P.I.S. and COFINS apply only on amounts effectively received by taxpayers

The Regional Federal Court of Appeals for the 1st Region has granted an injunction to a water and sanitation service company to exclude from P.I.S. and COFINS tax basis the amounts of utility bills unpaid by consumers. The court ruled that both P.I.S. and COFINS should be levied on income effectively earned by the taxpayer, rather than its accounts receivable. (Appeal No. 200601000342419)