Brazil’s Federal Supreme Court (STF) suspended on Wednesday the payment of about US$ 12.4 billion in back taxes by mining company Vale, giving the world's largest iron ore producer a temporary victory in a dispute with the government. Vale is fighting four actions that claims the mining giant has avoided paying levies on profits obtained at some of its foreign subsidiaries. The company says it has already paid this money to foreign governments and taxing the company again is an unfair burden.
Vale has in recent years been the subject of government pressure to invest more in projects that create jobs but are detrimental to profits. If the decision holds up in the courts, it could open the door for cases against other Brazilian-based companies that have tax liabilities on foreign earnings.
Publicado em: 10/5/2012 22:22:00
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