Swiss demand back taxes from Vale Swiss unit-paper

ZURICH Feb 17 (Reuters) - Switzerland is demanding that Vale SA, the world's No.2 iron-ore producer, pays five years in back taxes, Swiss newspaper Tages-Anzeiger's website reported on Friday.

Brazil-based Vale raised the ire of Swiss tax officials by not honouring commitments made under a tax deal with the canton of Vaud, Tages-Anzeiger said, without citing sources and saying the information was based on its own research.

Switzerland has attracted a variety of major international firms such as Vale with tax breaks for holding corporations.

A spokesman for the Swiss tax office didn't immediately comment. Vale couldn't be reached at its Vaud, Switzerland or Rio de Janeiro offices.

On Thursday, Vale reported provisions for losses it may face, largely related to a tax lawsuit in Brazil. Vale is Brazil's most international company with operations and offices in dozens of countries in South and North America, Asia, Africa and Australia.

If confirmed, the Swiss move signals differences may be emerging between Switzerland's government and its cantons, which have far-reaching autonomy in tax matters and have in recent years competed to attract wealthy residents and corporations.