The tax on services of any kind (ISS) is levied on the bank of collateral — such as endorsement and bail. This is because these activities are not seen as financial operations, but a service rendered subject to the tribute. This understanding of the Court of Justice of Sao Paulo was maintained by the second class of the Superior Court of Justice in appeal moved by a bank on the incidence of the bank guarantee tax. According to the financial institution, the municipality of São Paulo has unduly adopted analogue interpretation of the list of services constant of the complementary law 116/03 to demand the tribute. Financial operations continued, such as the granting of bail and endorsement are under the Union's tax jurisdiction and therefore subject to the financial transaction tax (IOF). By denying the request, TJ-SP concluded that there is an incidence of the ISS on the tariff if the financial institution covers value to provide the endorsement, bail or consent. According to the Paulista court, the mere provision of collateral is not a financial transaction, as the bank does not disburse values. "To remove the understanding that the quo has reached, in order to accommodate the peculiarities of the case and to verify that it is not a service, as sustained in this special resource, it is necessary the redevelopment of the factual-probative collection of the records, which is shown Unviable in special appeal, by obstacle of docket 7/STJ, "explained Minister Og Fernandes, of the STJ, by denying the appeal. With information from the press office of the STJ. RESP 1,359,570