Avaí celebrate finalising tax settlement with Brazil’s Treasury | OneFootball

A successful proceeding secures Avaí a deadline for paying tax debts, prevents asset seizures, and ensures the continuity of the Club’s management

Avaí Futebol Clube has signed a Tax Settlement Agreement with the Office of the Attorney-General of the National Treasury (PGFN). The agreement covers federal taxes, social security contributions, FGTS, and other tax obligations accumulated over decades. Full compliance with the terms of the negotiation, especially the timely payment of the installments, guarantees the Club the right to discounts on fines and interest, as well as the consolidation of a repayment plan compatible with Avaí’s cash-generation capacity. The payment term is 12 years.“The tax settlement had been awaited for a long time, and its conclusion represents an important milestone for Avaí. It provides greater security and predictability for management, allowing the Club to move forward with its financial reorganization process and focus its efforts on its long-term planning,” says president Bernardo Pessi. He recalls that the need to renegotiate the club’s tax debts was one of the conclusions reached by a finance committee created within Avaí’s Deliberative Council years ago.Attorney Graziele Bernardes Lopes, from the Tax Law Center at Cavallazzi, Andrey, Restanho e Araújo Advocacia, explains that the tax settlement benefits both the taxpayer and the government. “The tax settlement is an opportunity offered by the tax authorities as an option for the taxpayer to regularize their situation with the government and reorganize their debts for effective payment, with reductions in fines and interest. The operation has impacts for everyone involved. The club no longer suffers from seizures of revenue and other penalties, and the State recovers funds that had not been collected for years and that would hardly have been recovered without these differentiated payment terms.” She was responsible for Avaí’s negotiation with the Office of the Attorney-General of the National Treasury. The process took three years and secured installment payments and reductions in fines and interest on debts accumulated over decades.The reorganization of liabilities and the conclusion of the negotiation represent an important change in the club’s routine, with the suspension of judicial freezes and asset seizures that currently threaten the club’s liquidity. In addition, the process complements the restructuring that began with the approval of the Club’s Judicial Recovery, which deals with liabilities owed to private and labor creditors. “A judicial recovery plan is only sustainable if the club is also able to resolve its tax debt. Otherwise, tax collection could make it impossible to comply with the approved plan itself,” says consultant Andrei Cota, of Conwert Gestão Empresarial, who served as the club’s financial advisor both in the judicial recovery and in the tax settlement.“The key point is that we have created greater financial stability for the coming years and consolidated an important step in the process of cleaning up the Club’s accounts. This opens up the possibility of investing in building and maintaining competitive teams,” says president Bernardo Pessi.

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