Court rules Petrobras within Brazil’s tax law with 2009 deduction

Brazil’s state oil firm Petrobras received some good legal news on Friday with a Brazilian court ruling that the company did not break the law with a 2009 tax deduction, according to Reuters.

The court found that Petrobras was acting legally when it deducted expenses for the development of oil and gas fields from its filing for that year.

However, the Finance Ministry, which was seeking around $1.6bn equivalent for the deduction, still has the right to appeal the decision.

Petrobras has been weighed down with debts and hamstrung by a huge corruption probe for more than two years.

Last week the company asked the country’s Supreme Court to lift an injunction preventing it from selling some of its offshore fields among other assets.

The divestment process was being held up by an injunction from a regional oil workers’ union.

Donal Scully

With 28 years experience writing and editing for newspapers in the UK and Hong Kong, Donal is now based in California from where he covers the Americas for Splash as well as ensuring the site is loaded through the Western Hemisphere timezone.
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