Investor Presentaiton
the restated amount of the contingency was R$ 580, of which R$ 54 was
assessed as probable and has a properly constituted provision, the amount
of R$ 224 was assessed as possible and the remainder as remote totaling
the amount of R$ 316.
In December 2017, the VCSA received a tax assessment notice from the
Brazilian Federal Revenue Office in the amount of R$ 1,295 for alleged non-
-payment or underpayment of IRPJ and CSLL relating to the period from
2012 to 2013, due to: (i) capital gain allegedly obtained due to a barter
made by the VCSA; and (ii) supposedly incorrect amortization of goodwill.
In October 2018, the Company became aware of the lower court decision,
which considered the challenge unfavorable. At the moment, the case
awaits the judgment of the Voluntary Appeal by CARF. On December 31,
2021, the updated contingency amount was R$ 1,562 and was assessed
as possible.
(ii) Profits abroad - IRPJ/CSLL
The Company and its subsidiaries have assessments drawn up by the
Brazilian Federal Revenue Office, for alleged nonpayment of IRPJ and CSLL
on profits earned abroad by its subsidiaries or affiliates, in the periods of
2007, 2008, 2010, 2012, 2013 and 2014.
The balance substantially composed by the Company, amounted to R$
1,445 at December 31, 2021 (R$ 1,061 as at December 31, 2020). All
cases are awaiting judgment at the administrative level.
(iii) ICMS credit
Between 2011 and 2013, eight notices of infringement and fines were filed
against the Company's subsidiary Citrovita Agro Industrial Ltda. (CAI), mainly
aimed at the collection of ICMS credited, as highlighted in invoices for the
transfer of other subsidiaries, with the specific purpose of non taxable ex-
port. The tax assessment notices totaled R$ 836 as at December 31, 2021.
(iv) PIS/COFINS credit statement
Substantially comprised by the subsidiary CBA, which has Decisional Orders
and tax assessments relating to the PIS and COFINS credits, referring to
the items applied in the production process, which, in the opinion of the
Brazilian Federal Revenue Office, would not generate the right to credit of
the said contributions. The amount restated as at December 31, 2021 was
R$ 709. Currently, all the processes await administrative decisions.
In the opinion of Management and in the opinion of its independent legal
advisors, in light of precedents and case law, the likelihood of loss of the
process is considered possible.
(v) Financial Compensation for the Exploration of Mineral Resources
CFEM
-
The subsidiaries Nexa BR, CBA and VCSA had several assessments drawn
up by the National Department of Mineral Production DNPM for alleged
failure to pay or lower collection of CFEM from 1991 to 2015. On December
31, 2020, the amount of possible loss amounted to R$ 501.
(vi) IRPJ/CSLL negative balance credit
VSA and its subsidiaries CBA received decisions regarding the gloss of ne-
gative balance of IRPJ credits, totaling the updated amount of R$ 571 as at
December 31, 2021.
Currently, the cases are awaiting an administrative decision due to the pre-
sentation of a challenge by the Company and its Subsidiaries.
In the opinion of Management and in the opinion of its independent legal
advisors, it appears that there was a misconception on the part of RFB
when assessing the amounts presented by the Company and its subsidia-
ries, which is why the likelihood of loss in the lawsuits is considered possible.
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