Unanimous decision reinforces taxpayers’ direct access to court without bureaucratic delays
In a ruling with nationwide impact, Brazil’s Supreme Federal Court (STF) held that taxpayers are not required to submit an administrative request before filing a lawsuit to claim exemption from income tax (IR) due to serious illness, or to seek the refund of taxes unduly collected.
The decision was issued under General Repercussion Topic 1,373, in Extraordinary Appeal (RE) No. 1.525.407, and now binds all lower courts across Brazil.
The Issue: Can Access to Justice Be Conditioned on Prior Bureaucratic Steps?
The central legal debate revolved around Article 5, item XXXV of the Brazilian Constitution, which guarantees the right to judicial review without undue interference by the public administration.
Specifically, the Court was asked to determine whether a taxpayer must first file a formal exemption request with Brazil’s Federal Revenue (Receita Federal) or another authority before turning to the courts to claim a constitutional or statutory tax benefit.
STF’s Ruling: Judicial Access Comes First
The STF ruled unanimously that:
✅ Taxpayers do not need to submit a prior administrative request before seeking:
• Recognition of the income tax exemption for serious illness;
• Refunds of income tax that were unduly withheld or paid.
The thesis confirms that taxpayers may go directly to the Judiciary, without needing to wait for — or even initiate — an administrative process.
What This Means for Patients and Taxpayers
This decision removes bureaucratic barriers and facilitates faster access to judicial protection, especially for retirees, pensioners, and patients facing serious health conditions. Key implications include:
- 🔹 Individuals with serious illnesses do not need prior approval from the tax authority to claim IR exemption in court;
- 🔹 If income tax was withheld improperly, the taxpayer may file a lawsuit immediately to seek a refund;
- 🔹 The ruling ensures that access to justice cannot be delayed by administrative hurdles.
Final Thoughts: A Win for Judicial Access and Taxpayer Rights
By deciding Topic 1,373, the STF reaffirmed the constitutional right to direct access to justice, especially in cases involving health and economic vulnerability. The ruling strengthens legal protections for taxpayers and curbs the public administration’s ability to impose procedural obstacles.
If you or someone you advise is affected by this issue, consult a tax attorney to ensure proper application of the ruling and to recover or protect rights related to income tax exemption.