Petrobras challenges tax disputes worth 8.77B Brazilian reais

|About: Petrobras - Petroleo Brasil... (PBR)|By:, SA News Editor

Brazil's federal tax authority filed a series of new tax claims against Petrobras (PBR -1.5%) between October and January, and the state-run company is challenging five tax assessments that total 8.77B Brazilian reais ($3.74B).

PBR says it has presented its defense against each of the claims and is awaiting judgment; the company considers the chance of losses to be "possible, but not probable, and accordingly we have not established any provision."

But investors should not brush off the claims; Vale agreed to pay 22.33B reais to settle a similar series of disputes over taxes on its foreign operations, which contributed to a record $6.45B Q4 net loss.