Reuters, 04/18/2012
Brazil’s Minas Gerais state is seeking an additional 1.2 billion reais (US$642.83 million) in taxes from iron ore mining company Vale, as the company’s disputes with the government mount over how much tax it should pay on its production.
Vale mentioned the disputed bill in its annual report, stating that the charge was specifically for its production in 2006. It said the sum could balloon if the government pursued additional tax for Vale’s production in subsequent years.
The disputed bill is for a tax known as the ICMS, collected at the state rather than federal level. Minas Gerais state calculated its bill based on the value of Vale’s production. Vale, on the other hand, calculated what it owed to account for its production costs.
