Reuters reported that Brazilian mining company Vale will appeal a court ruling allowing the government to charge it BRL 25 billion in unpaid taxes on profits from foreign subsidiaries.

A Vale spokesman said that "The decree does not take into account bilateral agreements to avoid double taxation."

He added that the decree also fails to adequately account for exchange rate fluctuations that affect the profitability of foreign divisions.

A Brazilian federal court backed the constitutionality of a provisional decree issued by the Brazilian government in 2001 regarding taxation of foreign subsidiaries.


(Sourced from www.reuters.com)