Union debt, or DAU is the name given to any legal or natural person that is on the list of people who owe to the PGFN (Attorney General of the National Treasury) due to any default. This default can result from some tax, some debt from processes, loans made with the government, or even debt from some contract such as bidding.
If you want to understand what the Union’s active debt is and how it can impact a debtor, read the article below.
What this article covers:
What is the PGFN?
The Attorney General of the National Treasury (PGFN) is a federal agency linked to the Ministry of Economy. Its main function is to collect the Union’s active debt, which is the set of values that must be passed on by the federal government to public and private entities.
What are the functions of the PGFN?
One of the main functions of the PGFN is to inspect Union contracts in order to identify possible defaulters, whether in the form of taxes, contracts and other forms of business with the government, which have defaulted on their debt and need to pay it. In this case, all active Union debt will end up being analyzed by the PGFN.
What is an active Union debt?
An active debt of the Union is the lack of payment of what is owed to the government, either because it lent money (as is the case of farmers, for example) in some aid program, or because it did not pay taxes, amounts arising from bidding and other forms of business that exist between individuals and/or companies with the State.
What types of debts generate active debt?
An active Union debt can come from non-payment of taxes, non-payment of loans, financing, non-payment of some contracts or even lawsuits, indemnities and all forms of duty to the State.
What are the consequences of active debt?
As serious consequences, the non-payment of an active debt with the Union can result in the seizure of your assets, auctions of your assets and even your assets completely blocked.
Individuals can also be prevented from taking out financing, loans, in some cases from selling and negotiating real estate and one of the biggest problems is that an active debt with the Union has monthly interest correction, becoming increasingly expensive.
To check if there is any outstanding debt with the Union in your name, just access the website https://www.regularize.pgfn.gov.br and check your situation.
Which PGFN program to help with a company’s overdue debt?
Occasionally, the PGFN offers a series of installment programs and interest rebates to help taxpayers pay their outstanding federal debt.
Let’s meet one of these programs.
How does the Simples Nacional Regularization Program work?
The Simples Nacional Regularization Program is a form of negotiation that tries to facilitate the payment of an active debt with the Union of a micro-entrepreneur or micro-enterprise through interest rebates and discounts and differentiated entries.
What are the benefits and who favors?
The Simples Nacional Regularization Program mainly favors microentrepreneurs (MEI) or microenterprises. The benefit of this negotiation can reach up to the reduction of 100% of the interest on the debt.
Extension of the deadline for joining the Simples Nacional Regularization Program
Joining the program has been postponed until June 30, 2022.
With the RELP, the micro-entrepreneur also has the facility to pay in installments his active debt with the Union, in this category the MEI can also obtain interest discounts.