Jeb Blount – Reuters, 7/17/2015
Brazil’s state-run oil company Petroleo Brasileiro SA said late Thursday it paid 1.6 billion reais ($508 million) to settle part of a tax dispute with Brazilian authorities and will take a charge against second-quarter earnings.
The payment includes 1.2 billion reais in back taxes and 400 million reais in fines and interest, Petrobras, as the company is formally known, said in a statement. The second-quarter charge, after taxes, will be 1.4 billion reais.
The payment comes after Brazil’s CARF, a tax-ajudication body in the Finance Ministry, ruled that Petrobras must pay a financial-transaction tax known as the IOF. The tax was levied on Petrobras foreign-subsidiary operations in 2008.