The court freezes funds from the repatriation fine.

Tocantins 247 - The Federal Court, through a decision by Federal Judge Adelmar Aires Pimenta da Silva, then presiding over the 1st Federal Court of the Judicial Section of Tocantins, in this capital, granted a preliminary injunction on November 18, 2016, in a lawsuit filed by the Municipality of Palmas, to order the blocking of funds related to the fine for the repatriation of assets provided for in Article 8 of Law No. 13.254/16.
According to the Municipal Attorney General, Publio Borges, the argument defended by Mayor Carlos Amastha and the Capital's Attorney's Office stemmed from the fight for equality among the Federated Entities (States, Municipalities, and the Union). This argument took into consideration that, in the preliminary injunctions issued by the Supreme Federal Court in actions brought by the member states harmed by the refusal to transfer such funds to the State Participation Fund – FPE, in Original Civil Actions No. 2931, 2934, 2935, 2936, 2939, and 2941, the 1st Federal Court of Palmas granted urgent relief in favor of the Municipality of Palmas, ordering the Union to proceed with the judicial deposit of the amounts in question.

It also emphasizes that the action was filed considering the Union's constitutional obligation to transfer to the Municipalities, through the Municipal Participation Fund – FPM, a portion of the proceeds from the collection of Income Tax and Tax on Industrialized Products, established in art. 159, I, b, of the Federal Constitution of 1988.

However, under the allegation that the Presidency of the Republic had vetoed the provision of item I of article 8 of Law No. 13.254/16, which determined the transfer of amounts collected as a fine levied on the collection of Income Tax on repatriated funds, the Union failed to include such collected amount in the transfer to the FPM (Municipal Participation Fund), which violates the prohibition contained in article 160, caput, of the Federal Constitution of 1988, which states that "the retention or any restriction on the delivery and use of resources allocated in this section to the States, the Federal District and the Municipalities, including additions and increases relating to taxes, is prohibited".

According to Mayor Carlos Amastha, who once again innovates in legal discussions and in the federative postulates of municipalities, "receiving these funds will allow the Municipality to use the amount to cover expenses related to municipal administration, as well as to strengthen public policies in various areas." In this sense, Amastha explains that national legislation determines that, of this amount, at least 25% must be used for the maintenance and development of education (Article 212, CF/88) and 15% for public health actions and services, according to Article 7 of Complementary Law No. 141/2012.

Carlos Amastha emphasized that in another lawsuit filed by the Municipality, "the Federal Court also determined that the tax incentives granted by the Union could not harm the transfers of the Municipal Participation Fund (FPM), and that the Union must reimburse all amounts withheld from the Municipality of Palmas due to such incentives and restore the legal and constitutional transfers."

According to the Municipal Attorney General, Publio Borges, "this court decision demonstrates once again that the technical and human investments made by Mayor Carlos Amastha in the Attorney General's Office, as well as in other municipal departments, have elevated Palmas in major national discussions and achieved significant progress in economic and social development."

According to Borges, the court decision also highlights the impartiality and social responsibility of the Federal Court of Palmas in the face of the country's economic reality and the major republican debates we have been experiencing in recent months.

With advice