Revenue says that, in May, there will be no money to pay for data processing

In a letter sent to Serpro and obtained by CNNthe IRS says that, as of May 12, it will no longer be able to keep payments to the agency – the government’s main provider of technology solutions.

The Revenue informed in the document that, this year, it would need a budget supplement of almost R$ 1 billion. However, at the last meeting of the Budget Execution Board, held in March, the request for more resources was not even considered.

The current budget provides R$ 554.6 million for maintenance of system production services in 2022, says the document. And the money is at an end. “Considering the approved budget and in relation to Serpro, it is not legally possible to order or execute expenses with the company from May 12, 2022, until there is the necessary budget supplementation”, says an excerpt from the document.

The IRS also claims that Serpro has been informed about the situation through official letters in recent months. The situation triggered the servers alert. In May, is the deadline for submitting income tax returns, for example.

The president of the National Union of Tax Analysts of the Federal Revenue of Brazil (Sindireceita), Geraldo Seixas, says that there is a risk of “blackout” in the body.

According to him, without resources for the cost of information systems, the processing of income tax returns can be compromised. Seixas says that there are other possible consequences, such as the delay in releasing and granting certificates, with an impact on the operation of companies and foreign trade. “Practically, all procedures for analysis, inspection, collection, collection, verification and updating of records depend on systems”, says Seixas.

The Revenue has a budget forecast of R$ 1.2 billion this year, less than half of what was reserved for the agency last year. At the end of last year, servers already warned that the budget would make the activities of the Revenue unfeasible this year.

Sought after, Serpro said it will guarantee the processing of income tax returns and payment of refunds, even if there are contractual problems. The IRS informed the CNN that “works together with the competent government bodies to recompose the Institution’s budget, in order to avoid any discontinuities in its regular operation”.