Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 6

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 8
Chunk 6
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 Patria Investments Limited      144  

  Table of Contents  

• On April 2, 2025, Platam Investments Brazil Ltda. (“ Platam”) received a new Notice of Infraction questioning non-payment of ISS. The aggregated amount involved in this proceeding is approximately US$1.0 million (R$6.1 million). The infraction period covers fiscal years 2022 and 2023. Based on the advice from our external counsel, the risk of loss in this proceeding is possible.

The Brazilian Federal Revenue Service has been reviewing and questioning the prevailing nonresident investment company structures used by the private equity industry for investments in Brazil. In connection with this review a tax claim was issued against the financial institution that acted as a legal representative for nonresident entities who invested in the Brazilian markets, including nonresident investment vehicles managed by certain of our affiliates that invested part of their holdings in Brazilian incorporated funds managed by certain of our affiliates. According to the Brazilian Federal Revenue Service, although previously understood to be exempt from income taxes, the financial institution should have withheld and collected withholding income tax on distributions made to such nonresident vehicles for which it acted as legal representative. Because such nonresident entities invested part of their holdings in Brazilian incorporated funds managed by certain of our affiliates, one of our subsidiaries (Patria Investimentos Ltda.) was viewed as jointly liable for the payment of the underlying withholding income tax, together with fines and interest. The administrative proceeding was concluded with a final decision favorable to all parties. In June 2024 the decision became final and unappealable. As a result, the tax assessment was canceled and the proceeding was formally closed.

The Brazilian Federal Revenue Service issued a tax claim against one of the Brazilian portfolio companies held by one of our funds, demanding the withholding income tax on the capital return to its shareholders, due to the fact that such remittances were considered simulated. In this sense, one of our subsidiaries (Patria Investimentos Ltda.) was deemed jointly liable as the legal representative of the investment funds that received such payments, as shareholders of the portfolio company. In July 2024 the administrative proceeding excluded Patria Investimentos Ltda. from the tax assessment. The case remains under review with respect to the other parties involved.

In 2024, the federal tax authorities issued an infraction notice against the administrator of a certain investment fund managed by our subsidiary Pátria Investimentos Ltda. According to the understanding of the Brazilian Federal Revenue Service, the investment structure did not meet