Brazil’s board of tax appeals (Carf) ruled against Gerdau on Wednesday in four cases with charges estimated at BRL 4 billion ($1.2 billion).
Carf has questioned Gerdau’s internal corporate structure arrangements, which weren’t subject to a rebate in certain taxes according to Carf’s view. Additionally, Carf alleges that Gerdau wasn’t subject to the alleged fiscal benefits.
Gerdau’s attorney, Plinio Marafon said the company will appeal the case. “We should present an embargo within Carf and bring the case to a court,” he said.
Gerdau said the ruling against the steelmaker was decided on a voting procedure, in which there were 5 votes favorable to Gerdau and 5 against the steel producer. The last vote, known as the quality vote, came in against Gerdau.
Earlier this year, Brazil’s federal police (PF) indicted Gerdau’s CEO, Andre Gerdau Johannpeter, during a corruption probe known as the Zelotes Operation.
Since the start of the probe in March last year, Gerdau has denied any wrongdoing.