This excerpt taken from the PBR 6-K filed Mar 2, 2005.
Remittances Abroad - Chartering of Mobile Platforms
Rio de Janeiro, March 1 2005 PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that on February 24, 2005, the 6th Chamber of the 1st Taxpayers' Council of the Ministry of Finance denied the two Voluntary Appeals filed by the Company, confirming the previous position of the Federal Revenue Office in Rio de Janeiro, in the sense that the benefits of non-taxation and zero rate related with Withholding Income Tax do not apply in the case in question of Remittances Abroad for chartering Mobile Platforms, since they are allegedly not ships.
Although the result of this judgment was unfavorable to the Company, it is appropriate to point out that the final outcome was the responsibility of the President of the Chamber, who, according to the internal regulations, was responsible for the deciding vote, to break the tie between the Counselors of the Ministry and those representing the Taxpayers.
From the technical point of view, the arguments expounded by the Company persuaded half of the voting Counselors, which leads the Company to continue to challenge, although at the administrative level, similar notifications, since the chances of a successful outcome at this first level of discussion are good.
As soon as the Company is notified of the ruling, it will appeal to the higher level, where the scope includes an appraisal of the tax assessments in question.
The Brazilian Navy considers all the movable platforms object of the levy of taxes to be ships; the reason is that, in the past, in analogous situations, the benefits of non-taxation and the zero rate were already recognized by the Federal Revenue, by means of formal manifestations that have never been revoked.
Petróleo Brasileiro S.A PETROBRAS
Investor Relations Department
Raul Adalberto de Campos Executive Manager
Av. República do Chile, 65 - 4th floor
20031-912 Rio de Janeiro, RJ
(55-21) 2534-1510 / 2534-9947
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: March 1, 2005
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.