19.10.201720:32:00UTC+00PETROBRAS: Company Obtains Favorable Decision In Tax Dispute In Brazil

Brazilian state-owned oil company Petrobras obtained a favorable decision in a tax dispute that could cost the company more than R$ 15 billion (US$ 4.7 billion). The dispute involved the deductibility of expenses with oil and gas output in the company's tax statement in 2010.

"The Administrative Board of Tax Appeals (CARF) issued yesterday a decision, unanimously, in favor of the company, in a fiscal administrative proceeding in the amount of R$ 7.8 billion, related to the moment of deductibility of expenses incurred by Petrobras in the development of oil and gas production," said the company in a statement.

Petrobras had not provisioned money to pay for the contingent liabilities of that dispute, yet it stated in the second quarter earnings report that the costs could reach R$ 15.604 billion if the company lost the tax battle.