Natura Cosmetics on December 20, 2012, received two notices of violation of Federal Revenue of Brazil (“RFB”), which require differences in IPI (tax over industrialized products) of R $ 297,129, or US$ 145,809  plus penalties and interest and other fees in the amount of U.S. $ 162.2 million that, according to Federal Revenue, the controlled Natura Cosmetics Industria e Comercio Ltda would have stopped collecting in 2008, due to adopt as the basis of calculating these taxes incorrect prices.

The assessment notices question the way businesses are organized (industry and wholesale distributor) and the formation of the base for calculating the federal taxes (IPI, PIS and COFINS).

Natura announced in a statement that will present impeachment to the tax assessments within the statutory period, and considers, based on the opinion of its internal and external counsel, that the risk of loss associated with this tax procedure is remote, reaffirming that has observed the legislation fully at the time of the events and that will prove that the procedure adopted is legitimate.

 The company further states that since 1994 it has the current organizational structure that segregates the industrial and commercial operation in distinct  establishments and that this  corporate organization,  object of the tax assessments, is widely adopted by various sectors of the economy.
 
In 2005 the IRS questioned the company about the incorrect payment of IPI under similar arguments. Natura reveals in the statement that proved the legislation compliance and obtained a favorable decision for cancellation of the administrative fines.