Giving in payment an immovable as a way to extinct tax liability: minimums requeriments for constitutionality of the local statutory law

Abstract

This article aims to discuss the requirements for constitutionality of the local statutory law that enacts giving in payment an immovable as way to extinct tax liability. Considering that the accord and satisfaction concept is equivalent to a sales transaction, there must be compliance with bidding process prescribed by Brazilian constitution. Therefore, the local statutory law shall set forth the concept according to the Brazilian federal acquisition law and the exemption from bidding process rule (article 24, X). As a result, the local administration is obliged to perform a property valuation and to declare that the acquisition is in the public interest.