First of all, it is important to clarify that this study refers to the deduction, in the PIS and COFINS’ tax basis, of the net expenses of reversals of allowances for doubtful accounts (PCLD) and the recovery of credits written off to losses, pursuant to the rules for the grouping of accounts of the Central Bank of Brazil itself for Publication Purposes.
For such, taxpayers will demonstrate that such amounts correspond to actual expenses, tied to their financial intermediation activities, pursuant to the legislation regulating on the matter, also supported by the Accounting Plan of the Institutions of the National Financial System – “COSIF” issued by the Central Bank of Brazil (BACEN) and even by the Office of the General Counsel for the Federal Treasury, through PGFN/CAT Opinion no. 325/2009 , as exposed below.
It should be clarified that this paper does not intend to resume the old discussion on the dichotomy between the ascertainment regimes of the PCLD imposed by BACEN and the tax rules for the purpose of deducting the IRPJ and CSL tax bases of financial institutions, or even claim to exclude from the PIS and COFINS’ tax basis revenues from defaulted sales, the assumptions used to analyze the mentioned matter do not affect the case at issue.