Unformatted text preview: erial adverse impact on the Company, and accordingly,
no provision has been made therefor. (iv) Income tax and social contribution related to the Plano Verão
In December 1994, the Company petitioned the Tribunal Regional Federal da 2ª região (the
“Tribunal”) to include in the determination of income tax and social contribution the IPC
difference in January 1989 of 70.28%. The Tribunal subsequently accepted the use of 42.72%.
Beginning in the third quarter of 2000 with the substantial utilization of the Company's net
operating losses in Brazil, the Company began remitting income tax using the 42.72% deduction
and has included a provision for contingencies of U.S.$ 20,362. (v) PIS and COFINS contributions
The Company is questioning in Court certain changes in the rates and rules for the calculation of
the PIS and COFINS contributions determined by Law 9718/98. The Company recorded a
provision in the amount of U.S.$ 26,981 in relation to these contributions, which it believes is
sufficient to cover any possible loss which could arise from this case. (vi) Others
The Company has, based on the advice of its legal counsel, recorded additional pr...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.
- Spring '08