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Brazil court rules in favour of Petrobras in tax deduction case

SAO PAULO, March 24 A Brazilian tax court ruled that state-controlled oil company Petróleo Brasileiro SA did not break the law by deducting expenses related to the development of oil and gas field from its 2009 income taxes.

According to a Friday securities filing, the Finance Ministry could still appeal against the ruling by the tax auditing court, known as CARF.

The Finance Ministry is seeking 5.1 billion reais ($1.6 billion) from Petrobras in compensation for the deducation, newspaper Valor Econômico reported on Thursday.

($1 = 3.1336 reais) (Reporting by Gabriela Mello; Writing by Bruno Federowski; Editing by Daniel Flynn)

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