Brazil court rules in Vale's favor in foreign-taxation dispute

Reuters

RIO DE JANEIRO, April 24 (Reuters) - A Brazilian appeals court ruled in favor of mining company Vale SA in a dispute over taxation of foreign units that last year forced the company to pay 22.3 billion reais ($10 billion) in a settlement with Brazil's tax authorities, the court's press office said on Thursday.

Brazil's Superior Justice Tribunal, the last court of appeal before the Supreme Court, ruled 3 to 1 that Brazilian treaties with Belgium, Luxembourg and Denmark prevented Brazil from taxing the profits of Vale units in those countries, the court's press office said.

The court also ruled that Brazilian rules allowing taxation of Vale profit in Bermuda are valid because Brazil has no relevant tax treaty with the island, the press office said.

($1 = 2.21 Brazilian reais) (Reporting by Jeb Blount; Editing by Meredith Mazzilli)

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