This excerpt taken from the PBR 6-K filed May 15, 2009.
Tax credit compensated by Petrobras total R$1.14 billion
(Rio de Janeiro, May 14, 2009). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that with regard the news published by the media about tax compensations, Petrobras clarifies that the net amount derived from its adopting the exchange rate variation taxation system (cash basis) was only R$1.14 billion.
The reason for this is that R$2.14 billion correspond to taxes paid in advance, which generated credits that were duly compensated. The supplementary total of R$1 billion, for Income Tax (IRPJ) and for the Social Contribution on Net Profit (CSLL), paid in January 2009 due to the choice to use the cash basis taxation system, must be subtracted from this amount.
The credit of R$1.83 billion, which was informed in error by the Press as derived from variations in the exchange rate and which added to the R$2.15 billion led to the amount of R$4 billion, is in fact related to credit generate by interest on equity. Therefore, this credit is not connected to the system that was adopted for exchange rate taxation.
Opting for the accrual basis or for the cash basis is a management decision, and it does not need to be submitted to the companys Board.