Provided by MZ Data Products
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF THE
SECURITIES EXCHANGE ACT OF 1934
 
THROUGH APRIL 29, 2005

(Commission File No. 1-15256)
 
 
BRASIL TELECOM S.A.
(Exact name of Registrant as specified in its Charter)
 
BRAZIL TELECOM COMPANY
(Translation of Registrant's name into English)
 

SIA Sul, Área de Serviços Públicos, Lote D, Bloco B
Brasília, D.F., 71.215-000
Federative Republic of Brazil
(Address of Regristrant's principal executive offices)


Indicate by check mark whether the registrant files or will file
annual reports under cover Form 20-F or Form 40-F.

Form 20-F ___X___ Form 40-F ______

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(1)__.

Indicate by check mark if the registrant is submitting the Form 6-K
in paper as permitted by Regulation S-T Rule 101(b)(7)__.

Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

If "Yes" is marked, indicated below the file number assigned to the
registrant in connection with Rule 12g3-2(b):

 


  Investor Relations
  (55 61) 415-1140
  ri@brasiltelecom.com.br
 
  Media Relations
  1 (212) 983-1702
  ivette.almeida@annemcbride.com


Free Translation

     BRASIL TELECOM S.A.
Publicly traded company
Corporate Taxpayer Registration 76.535.764/0001 -43
Board of Trade 53 3 0000622 9

NOTICE TO SHAREHOLDERS

PAYMENT OF INTEREST ON SHAREHOLDERS’ EQUITY

Brasil Telecom S.A. (the “Company”) informs that, on this date, the Company’s Board of Directors approved the payment date for the interest on shareholders’ equity credited on 04/20/2005, which will be imputed to the dividends relative to the fiscal year 2005, pursuant to article 9 of Law 9,249/95 and Deliberation 207/96 of the Brazilian Securities and Exchange Commission (CVM - Comissão de Valores Mobiliários). Following are the details regarding the payment:

1. AMOUNT

The total interest on shareholders’ equity amount, net of taxes, to be paid is R$204,085,000.00 (two hundred and four million and eighty-five thousand reais), according to the Material Fact released on April 21, 2005, as follow:

Date of the credit 
Brazilian Ex- Date 
Payment Date 
Gross amount  credited  (R$) 
Gross amount per  1,000 shares  (R$) 
Net amount per  1,000 shares  (R$) 
04/20/2005  05/03/2005  From 05/16/2005  240,100,000.00  0.443300632  0.376805537 

2. FORM AND PLACE OF PAYMENT

Shareholders who have bank accounts and have provided their bank account information to Banco Bradesco S.A. (“Bradesco”), Depositary Institution, will have their interest on shareholders’ equity credited to those accounts.

The interest on shareholders’ equity corresponding to shares deposited with the custodian agent will be credited to the respective stock exchange, which will then transfer the payments to shareholders through certified Brokerage Houses.

The remaining shareholders should proceed to a Bradesco branch of his or her choice, bringing along proof of banking account for registration (optional) and identified with the following documents:

A Natural Person: certified copy of his or her identification card, an Individual Taxpayer Registration (CPF) card and proof of address.

A Legal Person: certified copy of its Federal Taxpayer Registration (CNPJ/MF), and current consolidated articles of association or bylaws. In the case of Corporations, it must be presented the minutes of the general shareholders’ meeting or the executive board meeting, which elected the current officers. Managing partners and officers with powers to represent the company must present a certified copy of their identity card, Individual Taxpayer Registration (CPF) card and proof of address.

If a shareholder is represented under power of attorney, agent of the shareholder must provide the public instrument of the grant of power of attorney, certified copies of the attorney’s identity card and an Individual Taxpayer Registration (CPF) card.

3. RETAINED INCOME TAX

The interest on shareholders’ equity retains income tax at the rate of 15%, except for the shareholders who identify themselves as exempt from taxes at Bradesco in this condition, according to the Material Fact published on the newspapers Jornal de Brasília, Valor Econômico and Diário Oficial da União, on April 21, 2005.

Brasília - DF, April 29, 2005.

Carla Cico

Investor Relations Officer
Brasil Telecom S.A.

 

 
SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: April 29, 2005

 
BRASIL TELECOM S.A.
By:
/S/  Carla Cico
 
Name:   Carla Cico
Title:     President and Chief Executive Officer