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
=
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