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OTHER PROVISIONS (Tables)

12 Months Ended

Dec. 31, 2022

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,
		2022				2021				2022				2021				2022				2021
		ThUS$				ThUS$				ThUS$				ThUS$				ThUS$				ThUS$

Provision for contingencies (1)
Tax contingencies			8,733				24,330				617,692				490,217				626,425				514,547
Civil contingencies			5,490				3,154				119,483				92,955				124,973				96,109
Labor contingencies			350				388				175,212				98,254				175,562				98,642
Other			-				-				13,180				21,855				13,180				21,855
Provision for European
Commission investigation (2)			-				-				2,397				9,300				2,397				9,300

Total other provisions (3)			14,573				27,872				927,964				712,581				942,537				740,453

(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)

Total other provision as of December 31, 2022, and December 31, 2021, include the fair value of the contingencies arising at the time of the business combination with TAM S.A and subsidiaries, with a probability of loss under 50%, which wold not be provided for except 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, 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

Opening balance as of January 1, 2022			731,153				9,300				-				740,453
Increase in provisions			687,558				-				-				687,558
Provision used			(63,087	)			-				-				(63,087	)
Difference by subsidiaries conversion			28,655				-				-				28,655
Reversal of provision			(427,979	)			(6,630	)			-				(434,609	)
Exchange difference			(16,160	)			(273	)			-				(16,433	)

Closing balance as of December 31, 2022			940,140				2,397				-				942,537

(1)

Accumulated balances include a judicial deposit delivered in guarantee, with respect to the “Fundo Aeroviario” (FA), for MUS$ 74, 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 amounts until that date, in order to avoid collection processing and the application of the fine.

(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.