After All, can a Condominium be Considered a CIT Taxpayer?

Abstract

This paper aims to evaluate whether or not a ‘condominium’ (co-owned propriety) may be treated as a taxpayer of corporate income tax – IRPJ. More specifically, we will assess if the economic exploitation of property held by multiple persons (for example, through the creation of a shopping center) can characterize the existence of an unregistered company or an economic unit subject to the tax treatment applied to legal entities. In order to do so, we will approach the definition of the IRPJ’s taxpayers, of condominium and of unregistered companies. Then, we will analyze administrative case law that dealt with this problem, demonstrating that certain issues have not been properly explored in recent discussions on the subject, especially regarding the role of article 126 of the Brazilian National Tax Code.