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16. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Tables)
 12 Months Ended
Dec. 31, 2017
Provision For Tax Social Security Labor Civil And Environmental Risks And Judicial Deposits Tables  
Accrued amounts and judicial deposits

Claims of different nature are being challenged at the appropriate courts. Details of the accrued amounts and related judicial deposits are as follows:

 

                Consolidated
    Accrued liabilities   Judicial deposits
    12/31/2017   12/31/2016   12/31/2017   12/31/2016
Tax   113,451   119,523   52,542   62,035
Social security   74,522   62,574   50,098   48,614
Labor   451,173   485,422   202,104   186,823
Civil   148,212   137,857   22,752   23,179
Environmental   37,733   7,716   1,826   2,220
Deposit of a guarantee           10,029   8,387
    825,091   813,092   339,351   331,258

 

Classification:                
Current   105,958   108,607        
Non- current   719,133   704,485   339,351   331,258
    825,091   813,092   339,351   331,258
Changes in the provision for tax, social security, labor, civil and environmental risks

The changes in the provision for tax, social security, labor, civil and environmental risks in the year ended December 31, 2017 were as follows:

 

                      Consolidated
                      Current + Non- current
  Nature   12/31/2016   Additions   Accrued charges   Net utilization of reversal   12/31/2017
  Tax            119,523            24,805                6,325                     (37,202)            113,451
  Social security              62,574            10,333                3,121                       (1,506)              74,522
  Labor            485,422            42,400              33,330                   (109,979)            451,173
  Civil            137,857              3,496              11,681                       (4,822)            148,212
  Environmental                7,716            33,549                   221                       (3,753)              37,733
               813,092          114,583              54,678                   (157,262)            825,091
Legal matters with possible risk of loss

 

        Consolidated
    12/31/2017   12/31/2016
Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Capital gain for an alleged sale of the shares of its subsidiary NAMISA (1)  .     11,073,961              8,415,142
Income tax / Social contribution - Assessment Notice and imposition of fine (AIIM) - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by Namisa       2,623,179              2,457,855
Assessment Notice and Imposition of fine (AIIM) - Income tax/ Social contribution - gloss of interest on prepayment arising from  supply contracts of iron ore and port services       2,500,606              2,327,499
Notices of violation and imposition of fine - Income taxes and social contribution due to profits from foreign subsidiaries (years 2008,2010 and 2011)       1,858,640              1,644,898
Tax foreclosures - ICMS - Electricity credits          920,306                 838,192
Installments MP 470 - alleged insufficiency of tax losses          704,739                 652,553
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS e IPI       1,685,648              1,505,079
Disallowance of the ICMS credits - Transfer of iron ore          499,006                 570,997
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation          275,233                 279,511
Disallowance of the tax losses arising on adjustments to the SAPLI          491,862                 455,214
Assessment Notice - ICMS - shipping and return merchandise for Industrialization          816,199                 749,492
Assessment Notice- Income tax- Capital Gain of CFM vendors located outside          203,185                 185,249
CFEM - Divergence on the understanding between CSN and DNPM on the calculation basis          290,249                 348,512
Other tax (federal, state, and municipal) lawsuits       3,065,131              2,727,258
Assessment Notice  - ICMS - Questions about sales to incentive zone          170,330    
Social security lawsuits          278,600                 263,951
Law suit applied by Brazilian antitrust authorities (CADE)            98,189                   96,316
Other civil lawsuits       1,111,944                 814,440
Labor and social security lawsuits       1,569,712              1,138,155
Environmental lawsuits - ACP TAC/PAC - Compliance with environmental obligations (2)  .          216,878                 203,486
Tax foreclosures  - Fine of Volta Grande  IV (3)            67,620                   58,045
Others Enviromental lawsuits          117,858                 113,741
      30,639,075            25,845,585

 1.    In February 2017, we were notified of the judgment of the Amendment of Judgment filed due the CARF’s decision on case, in which the Federal Revenue Service of Brazil challenges the capital gain on the alleged sale of 40% of NAMISA (currently CSN Mineração S.A.). The CARF, in short, agreed with the infringement notice. The Company, however, is taking of the lawfulness of the operation and, therefore, is evaluating the appropriate legal and procedural measures to reverse the decision. Currently we have been discussing the subject in several processes and there is a fiscal execution by which a portion of our assets, such as buildings, equipment, land, vehicles and fixtures and furniture, has been given as a guarantee. This processual scenario does not change our assessment and, accordingly, we maintain that contingency as possible.

 

2.      In 1995, the Municipality of Volta Redonda filed a civil action requesting compliance with the requirements of the Environmental Compensation Program (PAC) agreed between the municipality and CSN. In May 2008, despite the fact that CSN had demonstrated its compliance with the TAC / 1995, involving an approximate amount of R$ 16 million, the Municipality of Volta Redonda disagreed and requested payment of the obligations considered by the Municipality as outstanding. After the initial discussions, the Municipality of Volta Redonda filed a petition to execute the allegedly unfulfilled items, in the original amount of R$ 172 million, which was duly contested by the Company. The First Instance Judge appointed a team of experts to determine the outstanding obligations and the respective value involved. Currently, the process is suspended, at the request of both parties, with a view to negotiations for a possible agreement.

 

3.      On April 8, 2013, INEA imposed on CSN a fine of R$ 35 million in respect of the aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the civil suit filed in July 2012. In connection with the application of this fine, an annulment action was distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, seeking the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action in order to enforce the amount of the fine imposed. The aforementioned Tax Enforcement action was distributed in May 2014 to the 4th Volta Redonda Active Debt Registry in the State of Rio de Janeiro. Currently, said enforcement action is suspended until the judgment of the annulment action, in order to avoid conflicting decisions.