A judgment issued by the courts of Rio de Janeiro ordered the Municipality to refund ITBI amounts collected in excess of the amount actually paid by the taxpayer in the acquisition of real estate. The decision recognized that the City Hall had used a tax base higher than the actual transaction value without initiating a prior administrative proceeding to justify the tax assessment. The ruling applies the legal thesis established by the Superior Court of Justice (STJ) in Theme 1,113 of the repetitive appeals.

Relevance: The decision reinforces the consolidated case law understanding that the value declared by the taxpayer carries a presumption of accuracy, and that the Municipality may not unilaterally establish a different tax base for the assessment of ITBI. This precedent has significant implications for real estate transactions and estate planning strategies, particularly in high-value transactions, by reducing the risk of excessive tax charges and expanding the possibility of judicial or administrative recovery of taxes paid improperly. The ruling also strengthens legal certainty in real estate purchase and sale transactions.

Source:

VALOR ECONÔMICO. Court Orders Municipality of Rio de Janeiro to Refund ITBI to Taxpayer. Available at: Valor Econômico.