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Itaú Unibanco garners injunction over merger-related tax bill

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Itaú Unibanco garners injunction over merger-related tax bill

Itaú Unibanco Holding SA secured a preliminary injunction related to its ongoing dispute over a tax assessment tied to the decade-old merger that created the banking giant, Valor Econômico reported.

The tax assessment reportedly amounts to 26.6 billion Brazilian reais and relates to alleged capital gains stemming from the merger of Itaú and Unibanco in 2008.

Itaú Unibanco vowed to continue fighting the order earlier this month after CARF, Brazil's tax appeals board, rejected an appeal by the bank against the assessment, a move that had taken the bank by surprise.

In its 2017 annual report, the company said that its loss risks from merger-related tax assessments were "remote," particularly as the company previously had gained favorable rulings on similar disputes. In a 2017 ruling, CARF had ruled in favor of the bank on a tax assessment tied to purported capital gains from the merger.

As of June 15, US$1 was equivalent to 3.78 Brazilian reais.