“Genneia S.A.” – Federal Chamber of Social Security, Chamber II
The AFIP claimed differences for employer contributions, considering that the company had incurred in an incorrect classification under Decree No. 814/01. Specifically, the main issue revolves around determining whether the activity carried out by the taxpayer falls within the “services sector” or within the “industry sector” and, as a consequence, whether the 21% or 17% tax rate should be applied.
In this regard, the taxpayer stated that it is engaged in the production of electricity, and therefore performs a set of operations to produce a specific good. It should be added that, unlike what happens in the leasing of services, it is carried out through a process, for which different raw materials are used to obtain a final product (electric energy) which, without this set of operations, could not be produced. Consequently, it concludes that it is not a service, but an industrial activity necessary to obtain a product.
In view of the above, the Chamber analyzed the activity carried out by the taxpayer, admitting the argument that it is an industrial activity, included in the lower rate for the liquidation of employer contributions.[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]