The Federal Revenue Service has determined the filing of assets of Assaí worth R$ 1.265 billion due to tax contingencies being discussed with Grupo Pão de Açúcar (GPA), the company announced just now.
The news is likely to cause unease among investors, both due to the high amount involved and the fear that Assaí may be held accountable for issues involving GPA – even four years after the split.
Sources close to the company, however, told Brazil Journal that the news is not as serious as it may seem.
The filing is not a block, but rather monitoring by the Revenue Service of these assets, ranging from stores to company land.
“They will have to notify the Revenue Service of any movement with these assets, but the filing does not prevent the purchase or sale of the assets. It is an act that can be carried out by any tax official in an administrative capacity,” said a lawyer involved in the case.
The Revenue Service requested the filing of Assaí’s assets using the concept of solidarity, found in Article 124 of the Tax Code. This concept states that a company can be held responsible for debts of another within the same group if both have a common interest in the event that generated this debt.
Assaí believes this is not their case, and stated that they will appeal the decision.
“The contingencies are related to GPA’s hypermarkets, supermarkets, and gas stations. Things that have never had anything to do with Assaí,” the source said. “Even when Assaí was part of the same group as GPA, they were already separate operations, with different CNPJs and separate supplier relationships.”
Assaí will also file a petition with the Revenue Service questioning whether the Tax Authority could indeed request the filing. In order for the Revenue Service to file the assets, the disputed debts must exceed 30% of the company’s assets – which according to Assaí’s viewpoint did not happen in this case.
In the relevant fact published just now, Assaí stated that they have been closely monitoring the issue along with GPA, “which has even reaffirmed its responsibility towards the company for debts and contingencies generated up to the date of the split.”
Assaí also mentioned that the amount listed in the filing under GPA’s responsibility is R$ 11.6 billion out of a total of R$ 12.9 billion. According to the Revenue Service, “the remaining amount refers to tax contingencies for which Assaí is responsible,” said the relevant fact.
“The company reaffirms that GPA remains responsible for its own contingencies, as per the terms of the split, and must indemnify Assaí for any resulting losses.”
So far, GPA has not received any notification from the Revenue Service requesting the filing of its assets.
These tax contingencies were already detailed in GPA’s balance sheet and are related to discussions with the Revenue Service involving taxes such as ICMS and PIS/Cofins. None of these discussions have been resolved so far.
Source
Arwen Volkov, A graduate of the University of St. Gallen in Switzerland with a degree in International Finance, Arwen specializes in sustainable finance and green investments. She began her career at an investment bank in London, where she developed financing models for environmentally friendly projects. Known for her analytical and strategic thinking skills, Arwen is a sought-after financial consultant. In her spare time, she mentors fintech startups, contributing to their growth strategies. She is also a nature enthusiast and an amateur photographer.
