Tax foreclosure (execução fiscal): how to defend against collection
Tax foreclosure (execução fiscal) is the proceeding used by the government to collect debts registered as overdue tax liability. Knowing the procedure and the defense routes is usually essential for the taxpayer being sued.
What tax foreclosure (execução fiscal) is
Tax foreclosure (execução fiscal) is the means by which the public treasury judicially collects credits registered as overdue tax liability, whether tax-related or not. It is based on the overdue tax liability certificate, a document that enjoys a presumption of certainty and liquidity until proven otherwise.
How the proceeding usually proceeds
After filing, the party being sued is summoned to pay or to secure the court. The security may make it possible to contest the debt and usually takes place through a deposit, attachment, or other forms allowed by law.
Defense paths
The routes vary according to the case and the procedural stage. Among the instruments usually employed are:
- Counterclaims against the tax foreclosure (execução fiscal), as a rule after security
- Objection of non-enforceability for matters of public order
- Discussion of prescription or lapse, where applicable
- Challenge to errors in the overdue tax liability certificate
The importance of analyzing the certificate
Formal flaws in the registration or in the amount charged may be relevant to the defense. For that reason, reviewing the overdue tax liability certificate and the debt's history tends to be an important first step.
Frequently asked questions
Do I need to secure the court in order to defend myself?
For counterclaims, security is generally required. The objection of non-enforceability, however, can be used without security for matters that do not require the production of evidence.
Does a tax debt become time-barred?
Prescription may occur according to legal deadlines and milestones. Recognition depends on the analysis of the case and of the collection's history.
Need guidance on this topic?
This article is informational. For guidance on your specific case, talk to our team.