The Tax Credit and The Judicial Recovery.

Solution found by the State of Rio de Janeiro: The procedural legal business

Résumé

he Brazilian judicial recovery system was inspired by the North American model, which has as its premise the inexistence of creditors capable of preventing the approval of the judicial recovery plan by itself. The article 57 of Law nº 11.101/05 seems to collide with this premise of the North American system, since it requires, for the approval of the judicial recovery plan, the presentation by the insolvent debtor of a negative certificate of tax debts, creating the figure of a creditor who, despite not participating in the judicial recovery, has the power to derail a plan. Due to this systemic contradiction, the jurisprudence of the Superior Court of Justice decided to remove Article 57 of the bankruptcy law, deepening the lack of harmony within the recovery system. The response of the Brazilian jurisprudence was not adequate and must be modified due to the new provisions brought by Law nº 14.112/21, which created several mechanisms for equalizing the tax liabilities of companies undergoing judicial recovery, compatible with the recovery dictates, especially the company's own maintenance. Within this scenario, the State of Rio de Janeiro issued a resolution providing for the possibility of equalizing the tax liabilities of companies undergoing recovery through procedural legal business, within a consensual context typical of the multi-door justice system.