Tax Case in Brazil

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 €590m, 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]

Cautionary Statement/Safe Harbour

This announcement may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the "Group"). They are not historical facts, nor are they guarantees of future performance.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; inability to find sustainable solutions to support long-term growth; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and business transformation projects; economic and political risks and natural disasters; financial risks; failure to meet high and ethical standards; and failure to comply with laws and regulations, including tax laws. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in 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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