STXNEWS LATAM-Brazil delays ruling on steelmaker Gerdau's tax case
Brazil's Administrative Council for Fiscal Resources, a unit of the country's tax authority, on Tuesday delayed for about a month the ruling on a dispute between the government and steelmaker Gerdau SA, scheduled for Tuesday, after a councilor asked for a recess to study the matter more carefully.
Gerdau is challenging a decision by the tax authority, known in Brazil as Secretaria da Receita Federal, annuling the obtainment of tax credits from goodwill generated by a Gerdau-led corporate restructuring in 2005.
Receita is demanding Gerdau pay 2.7 billion reais ($1.1 billion), saying the charge was generated by a combination of entities controlled by the same group, and that the company carried out the transactions solely for the purpose of generating tax credits.
Shares of Gerdau erased early gains, and shed 0.2 percent to 16.69 reais in late Tuesday afternoon trading.