Brazil’s board of tax appeals (CARF) has maintained Samarco’s BRL 1 billion ($238.7 million) income tax charge, according to a media report from Valor.
The local pellet producer, a 50/50 joint venture between Vale and BHP Billiton, halted operations in November 2015 following a deadly iron ore waste dam burst that killed 19 people.
The media report said the income tax charge was due to inter-company transactions involving Samarco and Vale, and thanks to fiscal benefits of which Samarco took advantage.
CARF said Samarco did not pay income tax between 2011 and 2014. The company said it will appeal CARF’s decision.