Lula received R$19.8 billion in additional revenue via Petrobras

the government Luiz Inacio Lula da Silva (PT) will receive a cash infusion of about R$20 billion to help close its accounts in 2024. The supplier will come from Petrobras. The state-owned company’s Board of Directors approved on Monday (June 17, 2024) an agreement to close administrative and judicial proceedings at the CARF (Council for Tax Resources Administration) which includes the payment of R$19.8 billion.

In practice, Petrobras will commit to some kind of CARF debt restructuring, in a model launched at the beginning of the year by the PGFN (General Prosecutor of the National Treasury) and the Federal Revenue Service. As it turns out Power360given the pressure exerted by Palacio do Planalto to acquire the supplier, this was the case It is considered correct Board of Directors approval for payment.

The agreement includes disputes related to the impact of Cide (Contribution to Intervention in the Economic Field), PIS (Social Integration Programme), and Cofins (Contribution to Social Security Financing) on ​​remittances abroad, from the period 2008 to 2013, which totaled R$44.79 billion. . Under the agreement, Petrobras will receive a 65% discount on the value of the debt.

Of the total, R$6.65 billion will be paid through judicial deposits already made in operations, and R$1.29 billion will come from tax breaks related to tax losses of the company’s subsidiaries. The remaining amount of R$ 11.85 billion will be paid directly to the National Treasury as follows:

• Introduction of the amount of R$ 3.57 billion, which will be deposited on June 30, 2024;
• 6 consecutive monthly installments of R$1.38 billion, starting on July 31.

According to the relevant Petrobras fact, the impact after tax effects will be R$ 11.87 billion on net profit for the second half of 2024. Here is the impact complete Statement (PDF – 98 KB).

The government has 6 of Petrobras’s 11 advisors. The agreement was approved by 10 of them. The only competitor was Marcelo Gasparino, one of the four minority shareholders. to Power360One member stated that it was “Excellent deal” For the sake of the company.

Understand the issue

The tax liability in question refers to financial transfers abroad under the platform charter contracts. The government took the matter to court because it realized that this type of transaction is subject to IRRF, Cide, PIS and Cofins.

Chartering consists of the use of offshore platforms, i.e. a service provider is appointed responsible for the operation of the vessel. Petrobras is the main company that carries out this type of contracting in Brazil, where the majority of tenants are foreigners.

According to the Notice of Compliance with the Tax Agreement, Petrobras had two options for entering the programme. The first option specified in the notice, which stipulates a 65% discount on the eligible value of the operation, with a 30% deposit on the remaining amount, and paying the rest of the balance in 6 monthly installments.

The second available option guarantees a 35% discount on the debt with a 10% deposit and payment in 24 installments. The model the company chose ended up being the government’s favorite, as it obtained resources more quickly.