12/31/2009	12/31/2008	01/01/2008
Recoverable taxes:
Income tax withheld at source	30,359	26,577	16,661
Recoverable federal taxes	43,479	26,066	24,982
Other	842	1,065	2,021
	74,680	53,708	43,664
Current	3,624	3,406	886
Non-current	71,056	50,302	42,778
Deferred taxes:
Assets
Income tax:
Tax loss carryforwards	241,041	266,085	266,243
Temporary differences
Provisions	100,940	2,295	6,501
Provision for doubtful accounts	8,890	2,855	2,958
Profit share plan	25,364	6,655	3,891
Currency exchange and derivative losses	11,024	-	-
Property, equipment, inventories and trade payables	20,870	5,390	4,920
Goodwill on business combinations	61,689	73,874	74,251
	228,777	91,069	92,521
Social contribution:
Tax loss carryforwards	89,628	98,413	99,650
Temporary differences
Provisions	36,338	826	2,340
Provision for doubtful accounts	3,201	1,028	1,065
Profit share plan	9,131	2,396	1,401
Currency exchange and derivative losses	3,968	-	-
Property, equipment, inventories and trade payables	7,513	1,958	1,079
Goodwill on business combinations	22,208	26,595	26,730
	82,359	32,803	32,615
	171,987	131,216	132,265
	641,805	488,370	491,029
Tax credits resulting from goodwill in the merger of Globotel (See Note 23)	2,131	8,502	74,128
	643,936	496,872	565,157
Income taxes:
Temporary differences
Intangible	136,487	139,833	123,502
Property and equipment	(2,096)	(4,371)	(12,352)
Other	760	682	551
	135,151	136,144	111,701
Social Contribution:
Temporary differences
Intangible	49,135	50,340	44,461
Property and equipment	(754)	(1,573)	(4,447)
Other	273	245	199
	48,654	49,012	40,213
	183,805	185,156	151,914

Rollforward of deferred tax assets	Tax loss carryforwards and negative basis	Temporary differences	Total
Balance on January 1st, 2008	365,893	125,136	491,029
Additions	6,019	35,369	41,388
Reductions	(7,414)	(36,633)	(44,047)
Balance on December 31, 2008	364,498	123,872	488,370
Additions	-	378,998	378,998
Reductions	(33,829)	(191,734)	(225,563)
Balance on December 31, 2009	330,669	311,136	641,805

During 2009 the Company merged with several profitable subsidiaries. Therefore, supported by projected future taxable income arising from operating activities of these subsidiaries, the Company recognized deferred tax assets on its tax losses, negative calculation base for social contribution and temporary differences, based on expected recovery of tax credits. The impact in 2009 was not material.

The estimated realization of deferred tax assets is determined based on the projection of future taxable income as follows:

2010	196,437
2011	62,140
2012	105,450
2013	60,619
2014 to 2019	217,159
	641,805

The estimates for recovery of deferred tax assets are based on the projections of taxable income considering several financial and business assumptions prevailing at December 31, 2009. Consequently, these estimates may not realize in the future as expected due to the uncertainties inherent in these forecasts.

The Company has not recognized as assets the tax benefits related to tax losses, the negative base and the temporary differences of certain subsidiaries, which are expected to be merged into the parent company, Net Serviços de Comunicação S.A., in accordance with the Company’s corporate restructuring plan.

The Company has tax loss carryforwards and negative basis of social contribution to offset 30% of annual taxable income, without expiration, for the following amounts:

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During the year ended December 31, 2009, the Company realized tax benefits of R$6,372 (R$65,625 on December 31, 2008) against taxable income. Management estimates it will amortize the remaining balance of goodwill of R$2,131 in fiscal year 2010.

Rollforward of deferred tax liabilities Temporary differences Balance on January 1st, 2008 151,914 Additions 46,268 Reductions (13,026) Balance on December 31, 2008 185,156 Additions 14,634 Reductions (15,985) Balance on December 31, 2009 183,805