This excerpt taken from the PBR 6-K filed Jun 8, 2007.
Other informations Search and apprehension of ICMS/ taxpayer substitution payments considered to be not due
Petrobras was sued in court by certain small oil distribution companies under the allegation that it does not pass on to state governments the State Value-Added Tax (ICMS) collected according to the legislation upon fuel sales. These suits were filed in the states of Goiás, Tocantins, Bahia, Pará, Maranhão and in the Federal District.
Of the total amount related to legal actions of approximately R$ 895.795 thousand, up to March 31, 2007, R$ 205.744 thousand had been withdrawn from the Companys accounts as a result of judicial rulings of advance relief, which were annulled as a result of an appeal filed by the Company.
Petrobras, with the support of the state and federal authorities, has succeeded in stopping the execution of other withdrawals, and is making all possible efforts to obtain reimbursement of the amounts that had been unduly withdrawn from its accounts.