UPDATE 2-Brazil court rules in Vale's favor on foreign taxation

jueves 24 de abril de 2014 19:55 GYT
 

* Vale had agreed to pay $10 bln in double-taxation dispute

* Company shares rise most in two weeks after court ruling

* Government says ruling will not change November tax settlement (Adds additional court and finance ministry comment and Vale decision not to comment)

By Jeb Blount

RIO DE JANEIRO, April 24 (Reuters) - A Brazilian appeals court on Thursday gave mining company Vale SA a partial victory in its 22.3 billion real ($10 billion) dispute with Brazil's government over the taxation of its foreign units.

Brazil's Superior Justice Tribunal, the last court of appeal before the Supreme Court, ruled three to one that Brazilian treaties with Belgium, Luxembourg and Denmark prevent Brazil from taxing the profits of Vale units in those countries, the court's press office said.

The court also ruled that Brazilian rules allowing taxation of Vale profit in Bermuda are valid because Brazil has no relevant tax treaty with the island, the press office said.

Vale declined to comment on the ruling or say how much of the company's business is conducted by its units in Belgium, Luxembourg, Denmark or Bermuda. With operations in more than 30 countries, Rio de Janeiro-based Vale is Brazil's most international company.

Shares of Vale, the world's largest iron ore exporter, rose after the decision. The company's preferred shares, the most-traded class of its stock, rose 1.62 percent, the most in two weeks, to 28.15 reais.   Continuación...