Gerdau wins tax claim amid corruption investigation

Tuesday, 29 May 2018 00:28:22 (GMT+3)   |   Sao Paulo
       

Brazilian integrated steelmaker Gerdau won a BRL 367 million ($98 million) tax claim in court, SteelOrbis has learned.

The steelmaker’s subsidiary, Gerdau Aços Especiais or Gerdau Specialty Steel, managed to revert a decision from Brazil's board of tax appeals (Carf) following the steelmaker’s corporate restructuring between 2004 and 2005.

Gerdau argued Brazil’s revenue service, Receita Federal, claimed BRL 367 million in revenues taxes, also known as IRPJ, and CSLL (Social Contribution on Net Profits). The court ruling said Carf’s decision should be annulled, but the Brazilian government may appeal the decision.

In addition to Gerdau Specialty Steel, other two Gerdau subsidiaries were also fined in the same Carf decision: Gerdau Aços Longos (Gerdau Long Steel) and Gerdau Açominas. Gerdau reportedly has a combined BRL 5 billion ($1.3 billion) in fines by Carf.

Gerdau said recently at a Q1 2018 Securities and Exchange Commission (SEC) filing “some of the decisions obtained at Carf related to those proceedings along with other matters involving the company included in the scope of the so-called Operation Zealots are being investigated by Brazilian federal authorities.”

The so-called Zealots corruption probe aims to verify the occurrence “or not of alleged illegal acts.”

 


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