Carf Upholds R$1.92 Billion Tax Assessments Against Vale and Samarco Over Mariana Deductions

Overview

• The tax court maintained four assessments over deductions from IRPJ and CSLL that covered repair outlays and environmental penalties, including amounts set in court agreements and transfers linked to Fundação Renova.
• The total upheld reaches R$1.92 billion, split between Vale (R$624.5 million and R$158.6 million) and Samarco (R$633 million and R$505 million).
• PGFN prevailed with the argument that the expenditures are not necessary, normal or usual to the companies’ activities and that deducting them would improperly socialize business risk.
• Some rulings turned on the chair’s tie‑breaking vote, and the cases still allow further administrative appeals or potential judicial review.
• Vale and Samarco maintain the payments are obligatory repair costs arising from the 2015 Fundão dam collapse, which killed 19 people and released about 44 million cubic meters of tailings.