(Petrobras, 7.Aug.2015) – Following the publication of Joint Regulation RFB/PGFN #1064 and Regulatory Instruction 1576 in the Official Gazette on 3.Aug.2015, by the Brazilian Internal Revenue and the Office of the General Council to the National Treasury, Petrobras has decided to include, under these regulations, the processes relating to the liability for Financial Transactions Tax (IOF) on loan agreements with foreign subsidiaries (loan transactions between Petrobras System Companies) for years 2007 and 2009 to 2012, amounting to R$2.8 bln.
The above-mentioned regulations allow taxpayers who joined the scheme in 2014 to include tax liabilities on their original dates. In addition to being able to take advantage of tax losses and a negative basis for Social Contributions against Net Profits by settling tax liabilities, the scheme also has advantages in terms of reductions in fines and interest.
Notwithstanding the financial advantages for the settlement of tax liabilities, any legal action taken would require guarantees to be provided, as well as a substantial increase in the amount of the liability as time progressed due to interest and additional financial charges. There is also the risk of cancellation of the Federal Tax Clearance Certificate, which could inflict losses on the Company through measures such as prohibiting it from importing and exporting oil and oil products.
Given the financial advantages offered, the Company has opted to include these liabilities under the scheme instituted by Law 12.996/14, and accordingly recognize a total amount of R$3.1 bln under tax expenses and R$1.3 bln under financial expenses in the income statement for the second quarter of 2015.
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