Investor Presentaiton slide image

Investor Presentaiton

(vii) Tax assessment notice - ICMS In the fourth quarter of 2016, the subsidiary CAI received a tax assessment notice whose value up to December 31, 2021 amounts to R$ 180. The pro- cess currently awaits judgment of the special appeal filed by the company before the Tax and Taxes Court of São Paulo. ICMS on electricity charges The subsidiary CBA has judicial and administrative discussions regarding the incidence of ICMS on the sector charges levied on the electricity tariff. As of December 31, 2021, the amount in controversy of these discussions amounts to R$ 234. In the opinion of Management and in the opinion of its independent legal advisors, the assessment is unfounded, which is why the likelihood of loss of the process is considered possible. (viii) IRPJ/CSLL - Transfer Price Between 2007 and 2010, four tax assessments were filed against its sub- sidiary CAI, aiming at the collection of IRPJ and CSLL, and the adjustment in the basis of tax losses and the negative basis of CSLL, due to the losses made in the adjustments made by the Company in this transfer pricing calculations in 2003 and 2004. In October 2018, one of the cases was clo- sed in a favorable to the CAI, with the amount of R$ 195 remaining under administrative discussion, restated up to December 31, 2021. The active processes await judgment of appeals by the Administrative Council of Tax Appeals. (ix) Tax classification mismatch - Import In March 2017, the subsidiary CBA was assessed on account of a suppo- sed error in the tax classification on the importation of inputs, resulting in the tax requirement (IPI, PIS, COFINS E II), whose value in December 2021 amounts to R$ 191. Because the undisputed legal counsel wrongly understood the complaint, the subsidiary CBA filed a challenge that was favorably judged in the first administrative instance. Currently, the case awaits judgment by the CARF of the voluntary appeal filed by the Attorney General of the National Treasury. In the opinion of Management and in the opinion of its independent legal advisors, the likelihood of loss of said process is considered possible. (x) Collection of ICMS due to divergences regarding the destination of the item The subsidiary CBA was assessed for alleged failure to pay ICMS. As at December 31, 2021, the value of these assessments was R$ 267. In the opinion of Management and in the opinion of its independent legal advisors, the criteria adopted in relation to the destination of the assets are in accordance with the pertinent legislation and the probability of loss of the process is considered possible. (xi) IRPJ/CSLL - Expense Deduction In December 2016, the subsidiary CAI was assessed by the RFB for the col- lection of IRPJ and CSLL, due to the gloss of exclusions from the calculation base of said taxes in the 2011 calendar year. The amounts required by the tax assessment notice total R$ 78. In the last quarter of 2018, a partial can- cellation of the tax assessment notice was filed by the Regional Judgment Office (DRJ), and judgment on the Voluntary Appeal filed is currently awaited. (c.2) Comments on contingent civil liabilities with likelihood of loss considered possible Nature 2021 2020 Public civil suit - Violation of the economic order 5,670 4,332 Administrative investigations carried out by the Secretariat of Economic Law 2,167 2,131 Other lawsuits 933 1,525 8,770 7,988 = 173
View entire presentation