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Below, the composition of deferred income tax and social contribution:

Parent Company Consolidated
2009 2008 2009 2008
Tax loss 7,798 4,843 1,719,136 1,649,882
Negative social contribution basis 2,872 1,744 619,081 593,924
Allowance for doubtful accounts - - 231,931 123,115
Derivative operations - - 28,240 (110,266)
Provision for contingencies 1,359 2,217 70,777 86,146
Accelerated depreciation of TDMA equipment - - 17,522 30,921
Adjustment to present value – 3G licensing - - 26,602 29,130
Goodwill 4,546 4,546 4,546 4,546
Other 1,627 1,604 11,947 33,840
18,202 14,954 2,729,782 2,441,238
 
Valuation allowance on tax credits (18,202) (14,954) (2,500,187) (2,281,024)
- - 229,595 160,214
                   
Current portion - - (32,709) (49,451)
Long-term portion - - 196,886 110,763


Pursuant to CVM Rule No. 371/02 article 2, paragraph II, TIM Celular, based on the expected generation of future taxable profit determined by a technical study approved by the Company management and reviewed by the supervisory board, recognized tax credits on income tax and social contribution losses carryforward and on temporary differences, which are not subject to statute of limitations.

Based on a technical study of taxable income being generated in the future, TIM Celular expects to recover these tax credits as follows:

 
2010 32,709
2011 66,962
2012 129,924
229,595


Deferred income and social contribution taxes amounting to R$160,214 at December 31, 2008 represent tax credits arising from tax losses (including both income tax and social contribution tax losses) and temporary differences of subsidiary TIM Nordeste. Considering the merger process carried out by TIM Celular, as mentioned in Note 2, the balance for 2008 not realized in 2009 was fully reversed.

The estimates of tax credit recoveries were based on projections of taxable income, which in turn relied on financial and business forecasts made at the end of 2009. Given the uncertainties usually surrounding forecasts, these estimates may not be realized in the future.

Accumulated tax losses and negative bases

The consolidated tax losses and negative social contribution bases give rise to tax credits which are recognized only if their prospects of realization are consistent and they are not barred by statutes of limitation. These tax credits can be summarized as follows:

Consolidated
2009 2008
Base Tax Credit Base Tax Credit
Tax loss 6,876,545 1,719,136 6,599,526 1,649,882
Negative basis 6,878,679 619,081 6,599,155 593,924
Temporary differences 1,151,660 391,565 580,683 197,432
14,906,884 2,729,782 13,779,364 2,441,238