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 |