Mismatches between the Taxable Event and the Taxable Basis of the IOF in revolving Credit Operations

Abstract

The current legislation presents a mismatch between the calculation basis and the material and temporal aspects of the IOF in revolving credit operations. There is no provision in law for the calculation of the IOF-credit through the sum of daily debit balances (calculation base) and there are doubts about the pertinence of this form of calculation in the face of a triggering event that was defined with a view to a specific act identifiable in time, consistent with the delivery of the credit resources. This article addresses these issues, investigating the historical framework and evolution of the IOF to look for the origins and the formation of the current legislation regarding the collection of this tax in operations of revolving credit. The main modalities of “revolving credit” operations are presented, as well as the details of the discussion focusing on the phenomena of “placement of resources at the disposal of the interested party” and the calculation based on the “sum of daily outstanding balances”. There are practical ramifications, as the present discussion also affects the issue of statutes of limitation and problems in the application of new rates.