Rio Revokes Refit’s ICMS Deferment After Auditors Find Documentation Flaws

Overview

• Confaz’s technical commission Cotepe published the formal removal of Refit’s ICMS deferment at the request of the Rio de Janeiro Secretaria de Fazenda, ending the company’s right to postpone the state sales tax on fuel imports.
• State auditors said they found inconsistencies in paperwork Refit used to qualify for the deferment and allege the company imported nearly finished fuel while claiming it was raw material and simulating refining at its Manguinhos unit.
• Refit disclosed that a judicial determination has left its cadastral status suspended with Receita Federal and impeded at the state level, and the company says it will pursue administrative and judicial appeals to restore operations.
• The Rio treasury has said it will carry out fiscal inspections now that the benefit was annulled and may apply fines if irregular use of the incentive is confirmed.
• Ongoing Polícia Federal inquiries and reporting link Refit-related funds to political payments and estimate large tax losses; those allegations remain under investigation and have not been adjudicated.