Provisions and contingent liabilities (Tables)

3 Months Ended

12 Months Ended

Mar. 31, 2020

Dec. 31, 2019


	March 31, 2020		December 31, 2019
Tax contingencies		9,956		9,878
Civil contingencies		2,412		2,673
Labor contingencies		2,529		2,642

Total provision		14,897		15,193

Judicial deposits (i)		10,050		18,403

(i)

There are circumstances in which the Group is questioning the legitimacy of certain litigations or claims filed against it. As a result, either because of a judicial order or based on the strategy adopted by management, the Group might be required to secure part or the whole amount in question by means of judicial deposits, without this being characterized as the settlement of the liability. These amounts are classified as “Other assets” on the consolidated balance sheets and referred above for information.


	2019		2018
Tax contingencies		9,878		9,392
Civil contingencies		2,673		5,610
Labor contingencies		2,642		2,472

Total provision		15,193		17,474

Judicial deposits (a)		18,403		14,850

(a)

There are circumstances in which the Group is questioning the legitimacy of certain litigations or claims filed against us. As a result, either because of a judicial order or based on the strategy adopted by management, the Group might be required to secure part or the whole amount in question by means of judicial deposits, without this being characterized as the settlement of the liability. These amounts are classified as “Other assets” on the consolidated balance sheets, and referred above for information.

Summary Of Changes In Other Provisions

Changes in the provision during the three months period


	Three months period ended March 31,
	2020			2019
As of January 1		15,193			17,474
Monetary correction		325			336
Provisions accrued		159			11
Provisions reversed		(546	)		—
Payments		(234	)		(318	)

As of March 31		14,897			17,503

'Summary Of Contingent Liabilities

Below is summarized these possible claims by nature:


	March 31, 2020		December 31, 2019
Tax (i)		69,963		69,386
Civil (ii)		89,419		81,414
Labor		4,600		3,151

Total		163,982		153,951

(i)

In December 2019, the Group was notified by tax authorities for a requirement of social security contributions due to employee profit sharing payments related to the calendar year 2015, allegedly in violation of Brazilian Law 10,101/00. Currently, the case at administrative level in assessment by the Administrative Council of Tax Appeals (“CARF”), awaiting the decision on the Group’s appeal. There are other favorable CARF precedents on the subject and the Group obtained legal opinions that support the Group’s defense and current practice.

(ii)

The Group is defendant in 456 civil claims by customers and investment agents, mainly related to portfolio management, risk rating, copyrights and contract termination. The total amount represents the collective maximum value to which the Group is exposed based on the claims’ amounts monetarily restated.

Below is summarized these claims by nature:


	2019		2018
Tax (i)		69,386		19,971
Civil (ii)		81,414		64,820
Labor		3,151		4,532

Total		153,951		89,323

(i)

(ii)

The Group is defendant in 6 civil claims by customers and investment agents, mainly related to portfolio management, risk rating, copyrights and contract termination. The total amount represents the collective maximum value to which the Group is exposed based on the claims’ amounts monetarily restated.

Summary Of Changes In Other Provisions

Changes in the provision during the year


	2019			2018			2017
Balance at January 1		17,474			11,843			5,334
Monetary correction		2,492			1,667			2,226
Provision/(Reversal)		(1,601	)		7,897			3,531
Business combination (Note 5 (ii))		—			—			7,921
Payments		(3,172	)		(3,933	)		(7,169	)

Balance at December 31		15,193			17,474			11,843