Retailer Carrefour's Atacadao Arm To Book Provisions On Brazilian Tax Dispute
French supermarket retailer Carrefour said on Monday that its Brazilian unit Atacadão would book a provision to cover for risks related to a Brazilian tax dispute.
Atacadão had been the subject of 240 tax disputes in several Brazilian states for a total amount of 815 million Brazilian Reais, or approximately €183 million euros, Carrefour said in a statement.
"Following an unfavorable decision by the Supreme Court on May 9, 2019, Atacadão decided, as a precautionary step, to record a provision for the entire potential risk," Carrefour said.
"The Supreme Court's decision is subject to appeal and Atacadão will continue to defend its interests in the context of all ongoing proceedings.
The cash flow impact on Atacadão will depend on the outcome and timetable of these proceedings," added Carrefour.