Dufry to be entitled to reclaim tax payments in Brazil
Dufry has been notified that a decision of the Federal Court in Rio de Janeiro in a lawsuit between one of its Brazilian subsidiaries and the Brazilian tax authority became final and non-appealable.
Based on this decision, Dufry will be entitled to reclaim tax payments made in prior years. Along with the exact amount of the tax reclaim, the effects that may fully or partially set off the tax reclaim, timing of the actual recovery of the amount and financial impact of the decision going forward are still being evaluated.
At this stage, Dufry estimates that the positive net amount of the tax reclaim could be approximately CHF 40 – 50 million, resulting in a corresponding one-time positive effect on its results.
The leading global travel retailer aims to account for the effect of the tax reclaims still in 2019. To enforce the tax reclaim, Dufry will need to initiate enforcement proceedings, which are expected to last a few days.
Headquartered in Basel, Switzerland, the company operates in 64 countries in all six continents and employs over 30 000 people.