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Decision Clarifies Criteria for Taxing Inheritance Income and Reinforces That There Is No Taxation Without Appreciation
The Superior Court of Justice ruled that inheritance transmitted at historical value is not subject to Individual Income Tax, and therefore does not generate a taxable event. The 2nd Panel of the STJ removed taxation, because the value of the investment fund shares remained identical to the value declared by the deceased, which prevents the recognition of capital gains.
Thus, the court stated that the Individual Income Tax only occurs when there is appreciation, as the gain depends on a positive difference between the value declared in life and the value used in succession.
Initial Divergence and TRF4’s Rationale
The Federal Regional Court of the 4th Region had interpreted the case differently, as it understood that the mere economic availability of the shares to the heirs would justify taxation. The TRF4 applied Article 65, paragraph 2 of Law 8.981/1995, stating that any transmission would be equivalent to alienation, even in cases of the holder’s death.
This interpretation expanded the legal understanding, which motivated the challenge in the STJ.
Role of the Rapporteur and Legal Interpretation in the STJ
The rapporteur of the special appeal, Minister Maria Thereza de Assis Moura, emphasized that Individual Income Tax only occurs when there is a capital gain, which requires appreciation. She also stated that the tax applies to wealth increases, such as financial earnings, when they exist.
The minister recalled that Article 23, paragraph 1 of Law 9.532/1997, establishes that the calculation of the gain occurs from the difference between the market value and the value declared by the deceased. Since there was no difference, there was no taxable event, and thus, there was no taxation.
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Application of Historical Value and Absence of Capital Gains
The STJ reinforced that taxation only occurs when the inheritance is transmitted at a market value higher than declared in life, which did not occur. When the transfer maintains the historical value, there is no appreciation, and therefore, there is no legal basis for taxing Individual Income Tax.
Limitation of Application of Fixed Income Norms
The minister explained that Article 65 of Law 8.981/1995 applies only to fixed income financial investments, something that does not correspond to the specific case involving investment fund shares.
She further emphasized that alienation requires an act of will, and therefore, does not encompass transmissions causa mortis, which result from legal determination, not from a voluntary act.
Illegality of the Federal Revenue’s Interpretative Act
With this interpretation, the STJ declared the Interpretative Declaratory Act 13/2007 of the Federal Revenue illegal, because the norm created a taxable event without legal provision.
The rapporteur stated that the act exceeded its interpretative function, by suggesting that the mere transfer of ownership of inherited funds, even at historical value, would generate Individual Income Tax. This legal fiction of redemption or alienation, according to the minister, finds no support in the legal system.
Assumption of Assets and Absence of Taxable Event
The minister stressed that the heirs only assumed the deceased’s assets, following the legal form and replacing the holder in their relationships with the financial institution. Therefore, it is not possible to create artificial situations that authorize taxation, since there was no appreciation or capital gain.
Thus, the court consolidated the guidance that succession at historical value is not subject to Income Tax, ensuring greater legal certainty for taxpayers.
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