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The Request Is Due To The Debts Related To Unpaid Taxes By The Refinery, Just With The State Of Rio The Debts Reach R$ 2.5 Billion.
The Manguinhos refinery (Refit), from Rio de Janeiro, received a favorable opinion from the Attorney General of the Republic, Raquel Dodge, who decided to continue the process of revoking its state registration. Vale Also Has Legal Issues.
The cause of the action is related to the refinery’s billion-dollar debts with the state government of Rio de Janeiro, regarding ICMS tax. The process is pending at the Federal Supreme Court (STF) and will be judged in the coming days by the President of the Court, Minister Dias Toffoli.
The Manguinhos refinery is undergoing a judicial recovery process, and its history of tax evasion weighed on the decision of the Attorney General of the Republic.
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About The Case
The Court of Justice of Rio (TJ-RJ) had issued a decision that prevented the São Paulo state government from revoking the refinery’s registration, due to debts of R$ 2.7 billion with the government of São Paulo. The justice system in Rio understood that the request would hinder the company’s judicial recovery plan.
According to Raquel Dodge, the refinery is characterized as a “chronic debtor,” as the company would not be passing on taxes to the entire operational chain, harming the state of Rio de Janeiro, and states: “the immediate execution of the effects of the challenged decision hinders the provision of public services, considering the importance of the tax for the state budget.”
Another concern of the Attorney General’s Office (PGR) is that the TJ’s measure in favor of the refinery allows other companies to also avoid paying taxes.
The debt with the state of São Paulo can reach R$ 13 billion per year and become unpayable, making the company unrecoverable, according to the PGR.
With the revocation of the state registration, the Manguinhos refinery (Refit) will not be able to issue tax documents in São Paulo, but will continue operations, as it is based in Rio de Janeiro.
Founded in 1954, the Manguinhos Refinery, located in the North Zone of Rio de Janeiro, is one of the few private refineries in the country and is responsible for the daily processing of 15,000 barrels of oil.
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