Nufarm mulls Brazil tax ruling
Nufarm is reviewing a “lengthy and complex” ruling from the Brazilian Arbitral Tribunal over tax liabilities prior to the 2007 acquisition of its Brazilian agrochemical business. A preliminary review indicates that Nufarm was “successful in the major aspect of the dispute” but did not succeed in all of its claims. It may return to the Arbitral process to seek clarification of aspects of the award. The company was looking to confirm that tax indemnification clauses in the initial investment agreement allowed Nufarm to recover amounts from the previous owner. It booked a contingent liability of Aus$86.2 million (US$89.8 million at the current rate) in its fiscal 2012 results. Nufarm acquired a 49.9% stake in Agripec in 2004 and purchased the outstanding 50.1% share in 2007 ( Agrow No 521, p 3).