Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 5

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 8
Chunk 5
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 a summary of our most significant tax proceedings with a risk of loss evaluated by our external counsels as possible:

• On December 16, 2019, the Brazilian Federal Revenue Service issued a tax assessment notice against one of our subsidiaries (Patria Investimentos Ltda.), to demand the collection of Social Integration Program (“ PIS”), and Social Security Financing Contribution (“ COFINS”), allegedly due on exported financial advice and consultancy services to Patria Finance Limited in 2015 and 2016. An aggravated penalty of 150% was applied in connection with a supposed fraud and sham allegation and certain executive directors were also deemed jointly liable in connection with such allegations. The administrative court has not yet issued a final decision in regard to this administrative proceeding. As of December 31, 2024, the estimated value involved in this proceeding was US$5.5 million (R$34.1 million). Based on the advice of our external counsel, we believe that the risk of loss in this proceeding is possible, and no provision had to be recorded.

• On December 16, 2019, the Brazilian Federal Revenue Service also issued a tax claim against one of our subsidiaries (Patria Investimentos Ltda.), to demand the collection of social security contributions on profit sharing program payments and signing bonus in 2015 and 2016. We filed our defense and a decision by the administrative court is currently pending. As of December 31, 2024, the estimated amount involved in this proceeding was US$2.1 million (R$13 million). Based on the advice of our external counsel, we believe that the risk of loss in this proceeding is possible, and no provision had to be recorded.

• In 2017, 2018 and 2022, the Municipality of São Paulo filed administrative proceedings against one of our subsidiaries (Patria Investimentos Ltda.), questioning the exemption of municipal tax over services (“ ISS”). The Municipality of São Paulo obtained favorable administrative decisions and, in light of the outcome of the administrative proceedings, our subsidiaries filed legal proceedings to revert the administrative decisions. As of December 31, 2024, our external legal counsel assessed the risk of loss relating to these lawsuits as possible and evaluated the potential loss in an aggregated amount of US$10 million (R$62 million). On June 28, 2024, the subsidiary agreed to the Tax Settlement Program ("PPI"), and all the related tax enforcement proceedings are currently in the process of being closed.