Brazil's Superior Court of Justice suspends order for Petrobras to pay R$ 7,4 billion.
Brazilian Supreme Court Justice Benedito Gonçalves suspended early Friday evening the decision that required Petrobras to pay R$ 7,39 billion to the Federal Revenue Service; he reassessed his decision from the previous day, which was against the oil company; "The risks arising from the immediate enforceability of the debt in question go beyond the limits of the litigation itself, insofar as they may affect the national fuel supply, which is a matter of public utility," he emphasized.
Deborah Zampier
Reporter from Agência Brasil
Brasilia – The Minister of the Superior Court of Justice (STJ) Benedito Gonçalves suspended this evening (14) the decision that obliged Petrobras to pay R$ 7,39 billion to the Federal Revenue Service. He reassessed his decision from yesterday (13), which was against the oil company, as he understood that there are new facts in the process that need to be considered.
"The risks arising from the immediate enforceability of the debt in question go beyond the limits of the litigation itself, insofar as they may affect the national fuel supply, which is a matter of public utility," the minister emphasized.
The decision states that "there are sufficient legal and economic reasons" to suspend payment until the courts make a final ruling on the validity of the charge. The minister notes that there have already been rulings in favor of Petrobras in the Federal Court of Rio de Janeiro, with a "strong indication" that the sentence ordering the charge may be overturned.
The legal dispute over Petrobras' tax debt began in 2003, when the company was audited by the tax authorities for failing to pay income tax on remittances abroad to pay for the chartering of mobile oil platforms between 1999 and 2002. Petrobras argues that the tax is not due because the platforms should be considered vessels, for which the tax rate is zero.
According to the STJ minister, the immediate demand for the funds "possesses a potentially damaging impact on the company's normal operations." He emphasizes that, although the state-owned company has significant economic power, the amount "is far too high to assume any ease in promptly providing sufficient guarantees to cover this debt."
The minister believes the impasse is "even more dramatic" given Petrobras' significant role in the national economy. Currently, the non-payment of the debt has led to the cancellation of the oil company's Tax Clearance Certificate, which could harm import and export operations, among other commercial difficulties.
Edited by: Juliana Andrade