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CURRENT AND DEFERRED TAXES | 12 Months Ended
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Dec. 31, 2019
Disclosure of income tax [text block] [Abstract] |
Disclosure of income tax [text block] | NOTE 18 - CURRENT AND DEFERRED TAXES In the period ended December 31, 2019, the income tax provision was calculated for such period, applying the partially integrated taxation system and a rate of 27%, in accordance with the Law No. 20,780 published in the Official Journal of the Republic of Chile on September 29, 2014. Deferred taxes are recognized, on the temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. No deferred tax has been recorded for permanent difference, since they are caused by transactions that are recorded in the financial statements and that will not have impact on income taxes.
| (a) | Current taxes
| (a.1) | The composition of the current tax assets is the following:
|  | Current assets |  |  | Non-current assets |  |  | Total assets |
|  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |
|  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Provisional monthly payments (advances) |  |  | 10,968 |  |  |  | 48,480 |  |  |  | - |  |  |  | - |  |  |  | 10,968 |  |  |  | 48,480 |
Other recoverable credits |  |  | 18,353 |  |  |  | 20,654 |  |  |  | - |  |  |  | 757 |  |  |  | 18,353 |  |  |  | 21,411 |
Total assets by current tax |  |  | 29,321 |  |  |  | 69,134 |  |  |  | - |  |  |  | 757 |  |  |  | 29,321 |  |  |  | 69,891 |
| (a.2) | The composition of the current tax liabilities are as follows:
|  | Current liabilities |  |  | Non-current liabilities |  |  | Total liabilities |
|  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |  |  | As of |
|  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Income tax provision |  |  | 11,925 |  |  |  | 3,738 |  |  |  | - |  |  |  | - |  |  |  | 11,925 |  |  |  | 3,738 |
Total liabilities by current tax |  |  | 11,925 |  |  |  | 3,738 |  |  |  | - |  |  |  | - |  |  |  | 11,925 |  |  |  | 3,738 |
| (b) | Deferred taxes
The balances of deferred tax are the following:
|  | Assets |  |  | Liabilities |
|  | As of |  |  | As of |  |  | As of |  |  | As of |
Concept |  | December 31, |  |  | December 31, |  |  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
|  |  |  |  | Restated |  |  |  |  |  | Restated |
Properties, Plants and equipment |  |  | 186,311 |  |  |  | 150,831 |  |  |  | 1,700,215 |  |  |  | 1,733,327 |
Assets by right of use |  |  | 42,011 |  |  |  | 202 |  |  |  | (91,470 | ) |  |  | (85,550 | )
Amortization |  |  | (903 | ) |  |  | (983 | ) |  |  | 52,233 |  |  |  | 55,880 |
Provisions |  |  | (139,346 | ) |  |  | (38,303 | ) |  |  | (182,913 | ) |  |  | (75,631 | )
Revaluation of financial instruments |  |  | 422 |  |  |  | 445 |  |  |  | (9,857 | ) |  |  | 458 |
Tax losses |  |  | 155,539 |  |  |  | 170,980 |  |  |  | (1,200,729 | ) |  |  | (1,198,170 | )
Intangibles |  |  | - |  |  |  | - |  |  |  | 349,082 |  |  |  | 351,238 |
Others |  |  | (8,451 | ) |  |  | (9,643 | ) |  |  | 242 |  |  |  | 5,019 |
Total |  |  | 235,583 |  |  |  | 273,529 |  |  |  | 616,803 |  |  |  | 786,571 |
The balance of deferred tax assets and liabilities are composed primarily of temporary differences to be reversed in the long term. Movements of Deferred tax assets and liabilities (a) From January 1 to December 31, 2017
|  | Opening |  |  | Recognized in |  |  | Recognized in |  |  | Exchange |  |  | Ending |
|  | balance |  |  | consolidated |  |  | comprehensive |  |  | rate |  |  | balance |
|  | Assets/(liabilities) |  |  | income |  |  | income |  |  | variation |  |  | Asset (liability) |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Properties, Plants and equipment |  |  | (1,615,783 | ) |  |  | 46,403 |  |  |  | - |  |  |  | 616 |  |  |  | (1,568,764 | )
Assets by right of use |  |  | 61,343 |  |  |  | 14,506 |  |  |  | - |  |  |  | - |  |  |  | 75,849 |
Amortization |  |  | (77,480 | ) |  |  | 22,486 |  |  |  | - |  |  |  | 174 |  |  |  | (54,820 | )
Provisions |  |  | 281,369 |  |  |  | (286,267 | ) |  |  | (785 | ) |  |  | (4,778 | ) |  |  | (10,461 | )
Revaluation of financial instruments |  |  | 3,223 |  |  |  | 2,417 |  |  |  | (1,770 | ) |  |  | (120 | ) |  |  | 3,750 |
Tax losses |  |  | 1,328,736 |  |  |  | 152,081 |  |  |  | - |  |  |  | (1,257 | ) |  |  | 1,479,560 |
Intangibles |  |  | (430,705 | ) |  |  | 24,436 |  |  |  | - |  |  |  | (267 | ) |  |  | (406,536 | )
Others |  |  | (20,539 | ) |  |  | (7,547 | ) |  |  | - |  |  |  | (319 | ) |  |  | (28,405 | )
Total |  |  | (469,836 | ) |  |  | (31,485 | ) |  |  | (2,555 | ) |  |  | (5,951 | ) |  |  | (509,827 | )
(b) From January 1 to December 31, 2018 Restated (Unaudited)
|  | Opening |  |  | Recognized in |  |  | Recognized in |  |  | Exchange |  |  | Ending |
|  | balance |  |  | consolidated |  |  | comprehensive |  |  | rate |  |  | balance |
|  | Assets/(liabilities) |  |  | income |  |  | income |  |  | variation |  |  | Asset (liability) |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Property, plant and equipment |  |  | (1,568,764 | ) |  |  | (19,735 | ) |  |  | - |  |  |  | 6,003 |  |  |  | (1,582,496 | )
Assets for right of use |  |  | 75,849 |  |  |  | 9,903 |  |  |  | - |  |  |  | - |  |  |  | 85,752 |
Amortization |  |  | (54,820 | ) |  |  | (3,735 | ) |  |  | - |  |  |  | 1,692 |  |  |  | (56,863 | )
Provisions |  |  | (10,461 | ) |  |  | 92,804 |  |  |  | 1,566 |  |  |  | (46,581 | ) |  |  | 37,328 |
Revaluation of financial instruments |  |  | 3,750 |  |  |  | (2,326 | ) |  |  | (269 | ) |  |  | (1,168 | ) |  |  | (13 | )
Tax losses |  |  | 1,479,560 |  |  |  | (98,154 | ) |  |  | - |  |  |  | (12,256 | ) |  |  | 1,369,150 |
Intangibles |  |  | (406,536 | ) |  |  | 20,000 |  |  |  | - |  |  |  | 35,298 |  |  |  | (351,238 | )
Others |  |  | (28,405 | ) |  |  | 5,439 |  |  |  | - |  |  |  | 8,304 |  |  |  | (14,662 | )
Total |  |  | (509,827 | ) |  |  | 4,196 |  |  |  | 1,297 |  |  |  | (8,708 | ) |  |  | (513,042 | )
(c) From January 1 to December 31, 2019
|  | Opening |  |  | Recognized in |  |  | Recognized in |  |  | Exchange |  |  | Ending |
|  | balance |  |  | consolidated |  |  | comprehensive |  |  | rate |  |  | balance |
|  | Assets/(liabilities) |  |  | income |  |  | income |  |  | variation |  |  | Asset (liability) |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Property, plant and equipment |  |  | (1,582,496 | ) |  |  | 67,237 |  |  |  | - |  |  |  | 1,355 |  |  |  | (1,513,904 | )
Assets for right of use |  |  | 85,752 |  |  |  | 47,729 |  |  |  | - |  |  |  | - |  |  |  | 133,481 |
Amortization |  |  | (56,863 | ) |  |  | 3,345 |  |  |  | - |  |  |  | 382 |  |  |  | (53,136 | )
Provisions |  |  | 37,328 |  |  |  | 13,881 |  |  |  | 2,873 |  |  |  | (10,515 | ) |  |  | 43,567 |
Revaluation of financial instruments |  |  | (13 | ) |  |  | 10,142 |  |  |  | 414 |  |  |  | (264 | ) |  |  | 10,279 |
Tax losses |  |  | 1,369,150 |  |  |  | (10,116 | ) |  |  | - |  |  |  | (2,766 | ) |  |  | 1,356,268 |
Intangibles |  |  | (351,238 | ) |  |  | (11,718 | ) |  |  | - |  |  |  | 13,874 |  |  |  | (349,082 | )
Others |  |  | (14,662 | ) |  |  | 5,844 |  |  |  | - |  |  |  | 125 |  |  |  | (8,693 | )
Total |  |  | (513,042 | ) |  |  | 126,344 |  |  |  | 3,287 |  |  |  | 2,191 |  |  |  | (381,220 | )
Deferred tax assets not recognized:
|  | As of |  |  | As of |
|  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
|  | ThUS$ |  |  | ThUS$ |
Tax losses |  |  | 110,933 |  |  |  | 137,761 |
Total Deferred tax assets not recognized |  |  | 110,933 |  |  |  | 137,761 |
Deferred tax assets on tax losses are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. As a result, as of December 31, 2019, the Company no longer recognizes deferred tax assets for ThUS $ 110.933 (ThUS $ 137,761 as of December 31, 2018) with respect to losses of ThUS $ 338,679 (ThUS $ 447,150 at December 31, 2018). Deferred tax expense and current income taxes:
|  | For the year ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
|  |  |  |  | Restated |  |  | Restated |
Current tax expense |  |  |  |  |  |  |  |  |  |  |  |
Current tax expense |  |  | 72,999 |  |  |  | 77,713 |  |  |  | 127,024 |
Adjustment to previous period’s current tax |  |  | (352 | ) |  |  | 362 |  |  |  | 489 |
Total current tax expense, net |  |  | 72,647 |  |  |  | 78,075 |  |  |  | 127,513 |
Deferred tax expense |  |  |  |  |  |  |  |  |  |  |  |
Deferred expense for taxes related to the creation and reversal of temporary differences |  |  | (126,344 | ) |  |  | (4,196 | ) |  |  | 31,485 |
Total deferred tax expense, net |  |  | (126,344 | ) |  |  | (4,196 | ) |  |  | 31,485 |
Income tax expense |  |  | (53,697 | ) |  |  | 73,879 |  |  |  | 158,998 |
Composition of income tax expense (income):
|  | For the year ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
|  |  |  |  | Restated |  |  | Restated |
Current tax expense, net, foreign |  |  | 76,806 |  |  |  | 65,850 |  |  |  | 100,657 |
Current tax expense, net, Chile |  |  | (4,159 | ) |  |  | 12,225 |  |  |  | 26,856 |
Total current tax expense, net |  |  | 72,647 |  |  |  | 78,075 |  |  |  | 127,513 |
Deferred tax expense, net, foreign |  |  | 37,294 |  |  |  | 58,271 |  |  |  | 21,846 |
Deferred tax expense, net, Chile |  |  | (163,638 | ) |  |  | (62,467 | ) |  |  | 9,639 |
Deferred tax expense, net, total |  |  | (126,344 | ) |  |  | (4,196 | ) |  |  | 31,485 |
Income tax expense |  |  | (53,697 | ) |  |  | 73,879 |  |  |  | 158,998 |
Profit before tax by the legal tax rate in Chile (27% at December 31, 2019 and 2018)
|  | For the year ended |  |  | For the year ended |
|  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | % |  |  | % |  |  | % |
Tax expense using the legal rate |  |  | 38,318 |  |  |  | 112,230 |  |  |  | 95,425 |  |  |  | 27.00 |  |  |  | 27.00 |  |  |  | 25.50 |
Tax effect by change in tax rate |  |  | - |  |  |  | 5,587 |  |  |  | 897 |  |  |  | - |  |  |  | 1.34 |  |  |  | 0.24 |
Tax effect of rates in other jurisdictions |  |  | 20,082 |  |  |  | 15,905 |  |  |  | 42,326 |  |  |  | 14.15 |  |  |  | 3.83 |  |  |  | 11.31 |
Tax effect of non-taxable operating revenues |  |  | (13,125 | ) |  |  | (3,076 | ) |  |  | (44,593 | ) |  |  | (9.25 | ) |  |  | (0.74 | ) |  |  | (11.92 | )
Tax effect of disallowable expenses |  |  | 66,257 |  |  |  | 61,295 |  |  |  | 35,481 |  |  |  | 46.69 |  |  |  | 14.75 |  |  |  | 9.48 |
Tax effect of due to the non-use of tax losses |  |  | - |  |  |  | 46,492 |  |  |  | 211 |  |  |  | - |  |  |  | 11.18 |  |  |  | 0.06 |
Other increases (decreases) in legal tax charge |  |  | (165,229 | ) |  |  | (164,554 | ) |  |  | 43,757 |  |  |  | (116.43 | ) |  |  | (39.59 | ) |  |  | 11.69 |
Total adjustments to tax expense using the legal rate |  |  | (92,015 | ) |  |  | (38,351 | ) |  |  | 78,079 |  |  |  | (64.84 | ) |  |  | (9.23 | ) |  |  | 20.86 |
Tax expense using the effective rate |  |  | (53,697 | ) |  |  | 73,879 |  |  |  | 173,504 |  |  |  | (37.84 | ) |  |  | 17.77 |  |  |  | 46.36 |
Other increases (decreases) in legal tax charges for US $ 165.2 million (US $ 164.6 million as of December 31, 2018) mainly include the effect of the reduction of the deferred tax liability of US $ 145.9 million (US $ 172.9 to 31 December 2018) that occurs at the early termination of the aircraft financing that were on leasing with special purpose vehicle outside Chile; and other adjustments for permanent differences in other group companies for US $ 19.3 million (US $ 8.3 as of December 31, 2018). Deferred taxes related to items charged to net equity:
|  | For the period ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |
|  | ThUS$ |  |  | ThUS$ |
Aggregate deferred taxation of components of other comprehensive income |  |  | 3,287 |  |  |  | 1,297 |

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