VAT Tax Issue in Brazil (Tables)

6 Months Ended

Jul. 31, 2013

Vat Tax Issues Disclosure [Abstract]

Schedule Of Value Added Tax [Table Text Block]

The foregoing forms the basis for the US$1.6 million charge to expense recorded by Lakeland in the first quarter of fiscal 2011.

	BRL (millions)							USD (millions)
Foreign exchange rate								1.82		1.82		1.82
		Total Paid Or To Be Paid Into Government Under Amnesty Program		Total Not Available For Credit¹		Available For Credit²		Total Paid Or To Be Paid Into Government Under Amnesty Program		Total Not Available For Credit¹		Available For Credit²
Original claim 2004-2006			3.5		1.4		2.1		1.9		0.8		1.1
Second claim
Preacquisition 2007-April 2008			2.4		1.0		1.4		1.3		0.5		0.8
Postacquisition May 2008-April 2009			3.3		1.4		1.9		1.8		0.8		1.0

Totals			9.2		3.8		5.4		5.0		2.1		2.9

Escrow released from one seller			1.0		1.0		-		0.5		0.5		-
Charged to expense at July 31, 2010			-		2.8		-		-		1.6		-

¹ Essentially represents the discount originally offered as incentive by the neighboring state.

² The amount allowed as credit against future payments represents the VAT taxes actually previously paid to the neighboring state.

Schedule Of Components Of Value Added Tax [Table Text Block]

Summary of Cash Flow Requirements: (R$ millions and US$ millions)

Claim period/description

Taxes

Fines
and
penalties

Maximum judicial
deposit

2004-2006 not paid into amnesty and being defended. Management does not plan to pay this into amnesty.

1.3

1.9

3.2

US$

1.6

2007-2009 claim by State of Bahia ⁽¹⁾

6.2

6.1

12.3

US$

6.2

TOTAL

7.5

8.0

15.5

US$

7.8

⁽¹⁾ Our attorney informs us that based on the slow progress so far in the administrative proceedings for the 2007-2009 claim, they believe it is now more likely than not that the next amnesty will arrive prior to the need to pay the R$12.3 judicial deposit. However, as per above, the Company intends to negotiate a settlement with the court system. Therefore, the most likely cash flow outlook in management’s opinion is as follows:

Schedule Of Unused Value Added Tax Credit [Table Text Block]

Balance Sheet Treatment

The Company has reflected the above items on its January 31, 2013 and July 31, 2013 balance sheet as follows:

		R$ millions		US$ millions⁽¹⁾
Noncurrent assets	VAT taxes eligible for future credit		3.4		1.9
Long-term liabilities	Taxes payable		6.2		3.1

⁽¹⁾ At exchange rate prevailing in 2010 when recorded.