Vale said that it’s wholly owned subsidiary Vale International based in St Prex, Canton of Vaud, Switzerland has resolved its tax dispute with the Swiss federal authorities.
The tax dispute was related to the federal tax holiday granted to Vale International in 2006 and the differences in its interpretation.
Vale decided to clear the dispute and will pay the additional taxes claimed by the Swiss federal authorities for a total of CHF 212 million. Vale has made a provision of USD 37 million and the difference will impact our income statement in the Q4 of 2012. Payment will be made in installments, starting in January 2013, with the last one taking place in 2015.
At the same time, the federal and cantonal tax exemptions to Vale International were renewed until 2015 as we will continue to meet the conditions determined for employment, investment in real estate and cooperation with Swiss universities.
