On June 13, 2024, Operation Calabar (“Operation”) was launched by the São Paulo State Finance Department, through which the Department of Collection, Revenue and Debt Recovery (“DICAR”) will verify ITCMD declarations related to extrajudicial transactions carried out in 2019 and 2020.

The Operation aims to analyze non-onerous transactions subject to the levy of the tax in an extrajudicial context, such as transfers of real estate and shares/quotas.

Taxpayers who carried out these transactions probably received an email alerting them about the start of the Operation and that, if necessary, they will receive a notification to present clarifications. Notary offices and notary services were also warned to review the accuracy of the data presented by taxpayers, as they may be held liable for any ITCMD that was not collected. Furthermore, if no irregularities are found in the payment of the tax, taxpayers will also be notified of the closure of the Operation.

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