Brazil Petrobras challenges series of billion-dollar tax claims

12 March 2014 13:27  [Source: ICIS news]

MEDELLIN, Colombia (ICIS)--Brazil’s state-controlled energy giant Petrobras said late on Tuesday that it is challenging a series of tax claims totalling Brazilian reais (R) 8.77bn ($3.73bn) that were issued by the nation’s federal tax authority between October last year and January.

The Secretariat of the Federal Revenue of Brazil issued the company four tax assessments relating to alleged non-payment of income taxes, financial operations taxes and other taxes in 2009, according to Petrobras.

A fifth assessment relates to the company’s alleged failure to pay social security contributions on employee benefits between January 2009 and December 2011.

Petrobras said that “administrative proceedings are still pending judgement” following the company’s defence against each of the claims.

The company said that the chances of loss are “possible, but not probable, and accordingly we have not established any provision”.

The claims represent about 37% of the company’s 2013 net income, which totalled R23.57bn, according to its latest earnings release.

($1 = R2.35)

By: Simon West

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