Federal Revenue Service intensifies inspection of corporate registrations for noncompliance with ancillary obligations

Agency estimates up to 1.8 million CNPJ registrations may be deemed unfit by the end of 2023

The Federal Revenue Service has issued a notice alerting taxpayers that, in the second half of 2023, it will escalate efforts to declare registrations with the National Registry of Legal Entities (CNPJ) as unfit due to omissions in the submission of bookkeeping records and statements over the last five years.

According to the agency, inspection efforts will focus on the following documents:

• Statement of Federal Tax-related Liabilities and Credits (DCTF);
• Simplified Tax Scheme Annual Statement (Simples Nacional) - Individual Microentrepreneur (DASN-Simei);
• Socioeconomic and Tax Information Statement (Defis);
• Simplified Tax Scheme Payment Bill Generator (PGDAS-D);
• Tax Accounting Bookkeeping (ECF);
• Digital Tax Bookkeeping (EFD Contribuições).

Unfit CNPJ

A CNPJ registration can be declared unfit if a company fails to submit any of the ancillary obligations listed above for more than 90 days. In such cases, corrective measures must be taken as soon as possible to remedy the situation.

An unfit CNPJ can hinder a company from performing activities that are essential to its operations, such as issuing invoices, carrying out financial transactions and taking part in bidding processes.

Further reading:

• Rectification of ancillary obligations: when, how and why?
• Federal Revenue Service brings corporate registration procedures up to date

Tax and business compliance

DPC provides comprehensive solutions for the preparation, submission and rectification of obligations, along with corrective and ongoing actions to ensure business compliance. Our dedicated team also assists in performing tax reviews, which preventively map out a business's tax records over the last five years. If you would like to avail our support, please reach out to us at: dpc@dpc.com.br.