XML 201 R52.htm IDEA: XBRL DOCUMENT

16 PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL AND ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2019

Provision For Tax Social Security Labor Civil And Environmental Risks And Judicial Deposits [Abstract]

Schedule of accrued amounts and judicial deposits

Details of the accrued amounts and related judicial deposits are as follows:

					Consolidated
	Accrued liabilities				Judicial deposits
	12/31/2019		12/31/2018		12/31/2019		12/31/2018
Tax	128,411		118,490		31,060		46,321
Social security	7,039		70,084				50,898
Labor	305,309		362,228		227,213		214,625
Civil	138,990		210,264		53,771		22,024
Environmental	43,498		31,390		3,731		1,900
Deposit of a guarantee					12,596		12,182
	623,247		792,456		328,371		347,950

Classification
Current		96,479		106,503
Non-current		526,768		685,953		328,371		347,950
		623,247		792,456		328,371		347,950

Schedule of 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, 2019 were as follows:

										Consolidated
										Current + Non-current
Nature		12/31/2018		Additions		Accrued charges		Net utilization of reversal		12/31/2019
Tax		118,490		25,019		4,188		(19,286)		128,411
Social security		70,084		4,386		91		(67,522)		7,039
Labor		362,228		36,133		59,502		(152,554)		305,309
Civil		210,264		65,817		12,465		(149,556)		138,990
Environmental		31,390		9,629		4,091		(1,612)		43,498
		792,456		140,984		80,337		(390,530)		623,247

Schedule of legal matters with possible risk of loss

The table below shows a summary of the carrying amounts of the main legal matters with possible risk of loss and the amounts on December 31, 2019 and 2018.

		Consolidated
		12/31/2019		12/31/2018
Assessment Notice and imposition of fine (AIIM) - Income tax and social contribution - Capital gain on sale of Namisa's shares		12,412,964		11,812,071
Assessment Notice and Imposition of fine (AIIM) - Income tax and Social contribution - Disallowance of deductions of goodwill generated in the reverse incorporation of Big Jump by Namisa.		3,867,663		3,722,888
Assessment Notice and Imposition of fine (AIIM) - Income tax and Social contribution - Disallowance of interest on prepayment arising from supply contracts of iron ore and port services		2,249,708		2,165,088
Assessment Notice and imposition of fine (AIIM) - Income tax and social contribution due to profits from foreign subsidiaries for years 2008, 2010, 2011 and 2014⁽¹⁾		2,946,288		1,891,149
Tax foreclosures - ICMS - Electricity credits		1,022,371		974,479
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS and IPI		1,100,564		1,481,382
Disallowance of the ICMS credits - Transfer of iron ore		567,534		529,607
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation		310,349		294,527
Disallowance of the tax loss and negative basis of social contribution arising from the adjustments in the SAPLI		538,268		516,583
Assessment Notice- IRRF- Capital Gain of CFM vendors located abroad		254,850		243,007
CFEM – difference of understanding between CSN and DNPM on the calculation basis ⁽²⁾		1,020,266		311,582
Assessment Notice- ICMS- questions about sales for incentive area		1,015,812		976,438
Other tax lawsuits (federal, state, and municipal)		4,478,014		3,625,167
Social security lawsuits		325,492		287,823
Enforcement action applied by Brazilian antitrust authorities (CADE)		93,212		101,683
Other civil lawsuits		1,721,753		922,171
Labor and social security lawsuits		1,565,237		1,537,078
Tax foreclosures – Fine – Volta Redonda IV ⁽³⁾		84,599		75,530
Other environmental lawsuits		215,691		144,235
		35,790,635		31,612,488

(1) On October 15, 2019, CSN received a new tax assessment requesting the payment of IRPJ / CSLL referring to profits earned by a foreign contractor, in the total amount of R$1 Billion;

(2) On December 23, 2019, CSN Mineração received 03 (three) new Notifications of Launches demanding payment of differences in the payment of CFEM, in the total amount of R$689 million;

(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.