Vale to push legal fight on Brazil tax on foreign units

Vale SA (VALE5.SA)(VALE) will keep fighting part of a Brazilian government tax claim in courts, which could help the world’s largest iron ore producer recover up to 22.325 billion reais ($9.6 billion) from a recent back-tax settlement. In a securities filing published on Monday, the Rio de Janeiro-based company said it will not seek legal recourse for back taxes it is currently paying to Brazil on profit from overseas operations between 2003 and 2012. But Vale will continue to challenge a tax claim on profit from foreign subsidiaries between 1996 and 2002 as well as in 2013. Vale claimed the Brazil government, which has been pushing companies to settle old tax debts amid a surge in public spending, was charging taxes to its subsidiaries that had already paid to foreign governments.


Leave a Reply

Your email address will not be published.