Brazil, Vale strike deal on tax dispute

Vale (VALE) reaches an agreement with the Brazilian government regarding some $14B in taxes the country's authorities claim the mining giant owes.

VALE will pay $9.7B over the next decade and a half and $2.56B this month, FT says.

Here's CEO Murilo Ferreira on the deal: "The proposed terms have allowed for a considerable reduction in the amounts in dispute, and the decision ... is consistent with our goal of eliminating uncertainties and directing managerial focus on Vale's businesses."

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Comments (6)
  • tarzan46
    , contributor
    Comments (24) | Send Message
    this outcome is good for now.....look for unstable government in future
    27 Nov 2013, 10:59 PM Reply Like
  • gmmpa
    , contributor
    Comments (680) | Send Message
    I will be interested in the details of why the Brazilian government feels these taxes are owned by Vale. I will rethink this position if the taxes are for the earnings of this Multinational company's earnings outside of Brazil. I sold my Petrobras position because of this. Double taxation is bad economic policy. Socialism and Marxism comes with a cost. Those governments that think it is fair and just will pay the price of reduced foreign capital investment. Socialism and Marxism has failed where it has been tried. Over time it will fail here also when the word gets out. It is bad enough to have to deal with monetary risk.
    28 Nov 2013, 07:13 AM Reply Like
  • guggsi
    , contributor
    Comments (18) | Send Message
    its not unlike the overblown fines with which banks are slapped in the US at the moment. Using profitable companies as ATM is nothing new for governments and of lately even more popular. Cost of doing business I guess.
    28 Nov 2013, 10:51 AM Reply Like
  • vireoman
    , contributor
    Comments (1269) | Send Message
    I'm not familiar with the details and justifications (or lack thereof) for the tax dispute with Vale. However, the gross intrusion of the Brazilian govt into the economy has nothing to do with Marxism and everything to do with a uniquely South American-brand of populism and a history of economic mismanagement. As for the ongoing penalties against some of the biggest US banks, it is related to the fraudulent misrepresentation of securities that were sold to govt-backed agencies. It is thus a benefit to taxpayers, as they would be on the hook for the losses incurred by those defrauded agencies.
    28 Nov 2013, 11:54 AM Reply Like
  • starboard
    , contributor
    Comments (93) | Send Message
    vireo man,


    If my memory is correct, the current president of Brazil is a former Marxist guerilla. Might Marxism play at least some role in the current race to the bottom?
    28 Nov 2013, 06:49 PM Reply Like
  • Tom Shaughnessy
    , contributor
    Comments (1144) | Send Message
    Wow, deters future investment in Brazil!
    28 Nov 2013, 09:40 PM Reply Like
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