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OTHER PROVISIONS (Tables) | 12 Months Ended
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Dec. 31, 2021
OTHER PROVISIONS [Abstract] |
Schedule of other provisions |
|  | Current liabilities |  |  | Non-current liabilities |  |  | Total Liabilities |
|  | As of December 31, |  |  | As of December 31, |  |  | As of December 31, |  |  | As of December 31, |  |  | As of December 31, |  |  | As of December 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |  |  | ThUS$ |
Provision for contingencies (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax contingencies |  |  | 24,330 |  |  |  | 21,188 |  |  |  | 490,217 |  |  |  | 364,342 |  |  |  | 514,547 |  |  |  | 385,530 |
Civil contingencies |  |  | 3,154 |  |  |  | 2,266 |  |  |  | 92,955 |  |  |  | 103,984 |  |  |  | 96,109 |  |  |  | 106,250 |
Labor contingencies |  |  | 388 |  |  |  | 320 |  |  |  | 98,254 |  |  |  | 48,115 |  |  |  | 98,642 |  |  |  | 48,435 |
Other |  |  | - |  |  |  | - |  |  |  | 21,855 |  |  |  | 17,821 |  |  |  | 21,855 |  |  |  | 17,821 |
Provision for European |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commission investigation (2) |  |  | - |  |  |  | - |  |  |  | 9,300 |  |  |  | 10,097 |  |  |  | 9,300 |  |  |  | 10,097 |
Provisions for onerous contracts (3) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 44,000 |  |  |  | - |  |  |  | 44,000 |
Total other provisions (4) |  |  | 27,872 |  |  |  | 23,774 |  |  |  | 712,581 |  |  |  | 588,359 |  |  |  | 740,453 |  |  |  | 612,133 |
(1) | Provisions for contingencies:
The tax contingencies correspond to litigation and tax criteria related to the tax treatment applicable to direct and indirect taxes, which are found in both administrative and judicial stage. The civil contingencies correspond to different demands of civil order filed against the Company. The labor contingencies correspond to different demands of labor order filed against the Company. The Provisions are recognized in the consolidated income statement in administrative expenses or tax expenses, as appropriate.
(2) | Provision made for proceedings brought by the European Commission for possible breaches of free competition in the freight market.
(3) | Based on market information on the drop in the price of some assets, a provision was made for onerous contracts associated with the purchase commitments of aircraft.
(4) | Total other provision as of December 31, 2021, and December 31, 2020, include the fair value correspond to those contingencies from the business combination with TAM S.A and subsidiaries, with a probability of loss under 50%, which are not provided for the normal application of IFRS enforcement and that only must be recognized in the context of a business combination in accordance with IFRS 3.
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, 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 |
Opening balance as of January 1, 2021 |  |  | 558,036 |  |  |  | 10,097 |  |  |  | 44,000 |  |  |  | 612,133 |
Increase in provisions |  |  | 403,229 |  |  |  | - |  |  |  | - |  |  |  | 403,229 |
Provision used |  |  | (84,497 | ) |  |  | - |  |  |  | - |  |  |  | (84,497 | )
Difference by subsidiaries conversion |  |  | (25,531 | ) |  |  | - |  |  |  | - |  |  |  | (25,531 | )
Reversal of provision |  |  | (119,029 | ) |  |  | - |  |  |  | (44,000 | ) |  |  | (163,029 | )
Exchange difference |  |  | (1,055 | ) |  |  | (797 | ) |  |  | - |  |  |  | (1,852 | )
Closing balance as of December 31, 2021 |  |  | 731,153 |  |  |  | 9,300 |  |  |  | - |  |  |  | 740,453 |
(1) | Accumulated balances include a judicial deposit delivered in guarantee, with respect to the “Fundo Aeroviario” (FA), for MUS$ 65, 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.
(2) | European Commission Provision

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