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OTHER PROVISIONS (Tables)

12 Months Ended

Dec. 31, 2020

OTHER PROVISIONS [Abstract]

Schedule of other provisions

		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,
		2020				2019				2020				2019				2020				2019
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$
Provision for contingencies (1)
Tax contingencies			21,188				2,033				364,342				164,190				385,530				166,223
Civil contingencies			2,266				2,202				103,984				66,605				106,250				68,807
Labor contingencies			320				971				48,115				26,505				48,435				27,476
Other			-				-				17,821				19,886				17,821				19,886
Provision for European
Commission investigation (2)			-				-				10,097				9,217				10,097				9,217

Provisions for onerous contracts (3)			-				-				44,000				-				44,000				-

Total other provisions (4)			23,774				5,206				588,359				286,403				612,133				291,609

Schedule of movement of provisions

						European
		Legal				Commission				Onerous
		claims (1)				Investigation (2)				Contracts				Total
		ThUS$				ThUS$				ThUS$				ThUS$

Opening balance as of January 1, 2018			367,493				9,883				-				377,376
Increase in provisions			106,870				-				-				106,870
Provision used			(59,032	)			-				-				(59,032	)
Difference by subsidiaries conversion			(48,330	)			-				-				(48,330	)
Reversal of provision			(66,965	)			-				-				(66,965	)
Exchange difference			(1,150	)			(480	)			-				(1,630	)

Closing balance as of December 31, 2018			298,886				9,403				-				308,289

Opening balance as of January 1, 2019			298,886				9,403				-				308,289
Increase in provisions			134,847				-				-				134,847
Provision used			(82,212	)			-				-				(82,212	)
Difference by subsidiaries conversion			(10,764	)			-				-				(10,764	)
Reversal of provision			(58,063	)			-				-				(58,063	)
Exchange difference			(302	)			(186	)			-				(488	)

Closing balance as of December 31, 2019			282,392				9,217				-				291,609

Opening balance as of January 1, 2020			282,392				9,217				-				291,609
Increase in provisions			408,078				-				44,000				452,078
Provision used			(47,238	)			-				-				(47,238	)
Difference by subsidiaries conversion			(58,654	)			-				-				(58,654	)
Reversal of provision			(25,563	)			-				-				(25,563	)
Exchange difference			(979	)			880				-				(99	)

Closing balance as of December 31, 2020			558,036				10,097				44,000				612,133

(1)

Accumulated balances include a judicial deposit delivered in guarantee, with respect to the “Fundo Aeroviario” (FA), for ThUS$ 69, made in order to suspend the collection and the application of a fine. The Company is discussing in Court the constitutionality of the requirement made by FA calculated at the ratio of 2.5% on the payroll in a legal claim. Initially the payment of said contribution was suspended by a preliminary judicial decision and about 10 years later, this same decision was reversed. As the decision is not final, the Company has deposited the securities open until that date, in order to avoid collection processing and the application of the fine.

Finally, if the final decision is favorable to the Company, the deposit made and payments made later will return to TAM. On the other hand, if the court confirms the first decision, said deposit will become a final payment in favor of the Government of Brazil. The procedural stage as of December 31, 2020 is described in Note 31 in the Role of the case 2001.51.01.012530-0.

(2)

European Commission Provision

Provision constituted on the occasion of the process initiated in December 2007 by the General Competition Directorate of the European Commission against more than 25 cargo airlines, among which is Lan Cargo SA, which forms part of the global investigation initiated in 2006 for possible infractions of free competition in the air cargo market, which was carried out jointly by the European and United States authorities.

With respect to Europe, the General Directorate of Competition imposed fines totaling € 799,445,000 (seven hundred and ninety-nine million four hundred and forty-five thousand Euros) for infractions of European Union regulations on free competition against eleven (11) airlines, among which are LATAM Airlines Group SA and its subsidiary Lan Cargo S.A .,For its part, LATAM Airlines Group S.A. and Lan Cargo S.A., jointly and severally, have been fined for the amount of € 8,220,000 (eight million two hundred twenty thousand euros), for these infractions, an amount that was provisioned in the financial statements of LATAM. On January 24, 2011, LATAM Airlines Group S.A. and Lan Cargo S.A. They appealed the decision before the Court of Justice of the European Union. On December 16, 2015, the European Court resolved the appeal and annulled the Commission’s Decision. The European Commission did not appeal the judgment, but on March 17, 2017, the European Commission again adopted its original decision to impose on the eleven lines original areas, the same fine previously imposed, amounting to a total of 776,465,000 Euros. In the case of LAN Cargo and its parent, LATAM Airlines Group S.A. imposed the same fine mentioned above. The procedural stage as of December 31, 2020 is described in Note 31 in section 2 judgments received by LATAM Airlines Group S.A. and Subsidiaries.