Unilever PLC Tax Case in Brazil (1912Q)
November 25 2016 - 5:30AM
UK Regulatory
TIDMULVR TIDM0NXM
RNS Number : 1912Q
Unilever PLC
25 November 2016
London/Rotterdam, 25 November 2016.
In our third quarter trading statement we advised that an
indirect tax case in Brazil which had been determined in Unilever's
favour in a prior judicial review would be heard in a higher court
in the fourth quarter.
The case has now been heard and we have received an adverse
judgement by the Brazilian judicial court. Whilst Unilever intends
to appeal this ruling at the Brazilian Supreme Court, it now needs
to either provide a guarantee to the Brazilian government or pay a
judicial deposit to the court equating to the potential amount
owing, within 30 days of the official court notification. Given any
penalty payments are much reduced if a deposit is made, Unilever
has decided to pay the judicial deposit of approximately EUR590m,
which will be recognised as a non current financial asset and hence
there will be no impact on reported Free Cash Flow.
As we still believe our case remains strong we are continuing to
include this in our contingent liabilities and there is no charge
to the P&L as a result of this latest judgement.
[ends]
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events, conditions or circumstances on which any such statement is
based. Further details of potential risks and uncertainties
affecting the Group are described in the Group's filings with the
London Stock Exchange, Euronext Amsterdam and the US Securities and
Exchange Commission, including in the Group's Annual Report on Form
20-F for the year ended 31 December 2015 and the Annual Report and
Accounts 2015.
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END
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