By Brazil Stock Guide – Light S.A. (B3: LIGT3; ADR: LGSXY) secured a major victory in Brazil’s top tax appeals body, which annulled R$2.4 billion (US$465 million) in assessments. The Superior Chamber of Tax Appeals (CSRF), the highest administrative instance within the Administrative Council of Tax Appeals (CARF), ruled by a broad majority that non-technical losses — electricity theft — can be deducted from the corporate income tax (IRPJ) and social contribution tax (CSLL) base for fiscal years 2016 and 2017Light.
The decision removes one of the company’s largest contingencies as it restructures under court-supervised recovery since 2023. Light and its subsidiary Light Serviços de Eletricidade (Light SESA) said the ruling reduces uncertainty and reinforces their commitment to legal and financial disciplineLight.
“This decision is a milestone for Brazil’s power sector and strengthens Light’s strategy to address contingencies and bring predictability to the business,” said Rodrigo Tostes, the company’s chief financial and investor relations officerLight.
Milestone for the utility sector
The ruling comes as Light negotiates billions in debt with creditors and seeks to restore market confidence. By recognizing the deductibility of theft-related losses, the case may set a precedent for other utilities operating in regions with high non-technical losses and delinquency.
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