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Itaú loses R$ 2,7 billion legal dispute with the Brazilian government.

Itaú lost a legal dispute worth approximately R$ 2,7 billion to the Brazilian government regarding Income Tax and the Social Contribution on Net Profit (CSLL) resulting from the merger of the institution with Unibanco. In total, five assessments were issued, and the largest, amounting to R$ 25 billion, was overturned by the financial institution, but the Administrative Council of Tax Appeals (CARF) is awaiting the judgment of an appeal before its Superior Chamber.

Itaú loses R$ 2,7 billion legal dispute with the Brazilian government.

247 - Itaú lost a legal dispute with the Brazilian government over R$2,7 billion related to Income Tax and the Social Contribution on Net Profit (CSLL) resulting from the merger of the institution with Unibanco. Itaú Unibanco announced that it will appeal the decision. The collection of the revenue resulting from the merger was made by the Administrative Council of Tax Appeals (Carf).

"Itaú Unibanco respects the CARF decision but intends to appeal it and is confident that its rights will be recognized in the final judgment. The case in question, which ended in a tie but was decided by the "casting vote," refers to yet another assessment related to the merger between Itaú and Unibanco. In all of these cases, the Federal Revenue Service's audit was based on tax arguments lacking legal support due to the absence of a taxable event. In the case judged, the assessment (i) disregarded a corporate transaction approved by the Central Bank of Brazil, CADE, and the Securities and Exchange Commission, (ii) involved a company that did not even exist at the time of the events, and (iii) charged capital gains tax on a transaction in which there was no sale of shares or availability of funds," said Itaú Unibanco in a statement.

In total, five tax assessments were issued. The largest one, amounting to R$ 25 billion, was overturned by the financial institution, but the CARF (Administrative Council of Tax Appeals) is awaiting the judgment of an appeal before the Superior Chamber.