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20. PROVISION FOR TAX, SOCIAL SECURITY, LABOR, CIVIL, ENVIRONMENTAL RISKS AND JUDICIAL DEPOSITS (Tables)
 12 Months Ended
Dec. 31, 2020
Provision For Tax Social Security Labor Civil Environmental Risks And Judicial Deposits  
Schedule of 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
    12/31/2020   12/31/2019   12/31/2020   12/31/2019
Tax   134,645   128,411   2,444   31,060
Social security   8,170   7,039        
Labor   328,334   305,309   212,737   227,213
Civil   151,776   138,990   67,819   53,771
Environmental   12,463   43,498   17,683   3,731
Deposit of a guarantee           24,434   12,596
    635,388   623,247   325,117   328,371
                 
Classified:                
Current   81,073   96,479        
Non-current   554,315   526,768   325,117   328,371
    635,388   623,247   325,117   328,371
Schedule of changes in the provision for tax, social security, labor, civil and environmental risks

The changes in tax, social security, labor, civil and environmental provisions in the year ended December 31, 2020 can be summarized as follows:

 

                    Consolidated
                    Current + Non-current
Nature   12/31/2019   Additions   Accrued charges   Net utilization of reversal   12/31/2020
Tax     128,411     8,626    4,267     (6,659)   134,645
Social security   7,039     5,892    192     (4,953)    8,170
Labor     305,309   44,693     39,507   (61,175)   328,334
Civil     138,990   46,577     15,579   (49,370)   151,776
Environmental    43,498     4,525    326   (35,886)     12,463
      623,247    110,313     59,871    (158,043)   635,388
Schedule of legal matters with possible risk of loss

The following table shows a summary of the balance of the main matters classified as possible risk compared to the balance at December 31, 2020 and December 31, 2019.

 

        Consolidated
    12/31/2020   12/31/2019
Assessment Notice and imposition of fine (AIIM) / Tax Enforcement - Income tax and social contribution - Capital gain on sale of NAMISA's shares     12,694,021     12,412,964
         
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.       3,930,093       3,867,663
         
Assessment Notice and Imposition of fine (AIIM) / Tax Enforcement  - Income tax and Social contribution - Disallowance of interest on prepayment arising from supply contracts of iron ore and port services       1,956,898       2,249,708
         
Assessment Notice and imposition of fine (AIIM) - Income tax and social contribution due to profits from foreign subsidiaries for years 2008, 2010, 2011, 2012 and 2014       3,461,574       2,946,288
         
Tax foreclosures - ICMS - Electricity credits          841,401       1,022,371
         
Offset of taxes that were not approved by the Federal Revenue Service - IRPJ/CSLL, PIS/COFINS and IPI       1,845,379       1,100,564
         
Disallowance of the ICMS credits - Transfer of iron ore          624,645          567,534
         
ICMS - Refers to the transfer of imported raw material at an amount lower than the price disclosed in the import documentation          317,848          310,349
         
Disallowance of the tax loss and negative basis of social contribution arising from the adjustments in the SAPLI          583,478          538,268
         
Assessment Notice- IRRF- Capital Gain of CFM vendors located abroad          260,326          254,850
         
CFEM – difference of understanding between CSN and DNPM on the calculation basis        1,051,661       1,020,266
         
Assessment Notice- ICMS- questions about sales for incentive area       1,111,034       1,015,812
         
Other tax lawsuits (federal, state, and municipal)       3,886,976       4,478,014
         
Social security lawsuits          233,116          325,492
         
Action to discuss the balance of the construction contract – Tebas          487,124          468,776
         
Action related to power supply payment’s charge - Light          288,390          253,569
         
Indemnity action due to the supply contract termination - Indumill          237,795          215,281
         
Enforcement action applied by Brazilian antitrust authorities (CADE)            95,833            93,212
         
Civil Public Action - Districts / School / Nursery relocation-CdP Dam (1)            12,207            20,000
         
Other civil lawsuits          777,850          764,127
         
Labor and social security lawsuits       1,506,626       1,565,237
         
Tax foreclosures – Fine – Volta Redonda IV (2)            94,304            84,599
         
ACP landfill Márcia (3)          306,389                   -   
         
         
Assessment Notice and imposition of fine (AIIM) -  Charge of IRRF- RFB  - Business combination (year 2015) between Namisa, Congonhas Minérios (current CSN Mineração) and consortium          862,324                   -   
         
Assessment Notice and imposition of fine (AIIM) - SEFAZ/RJ - ICMS on purchases of intermediate products (4)          498,002                   -   
         
Assessment Notice and imposition of fine (AIIM) - RFB -  Disallowance of credits PIS/COFINS of inputs and freight       1,082,517                   -   
         
Other environmental lawsuits          257,965          215,691
      39,305,776     35,790,635

 

(1) In May 2019, the State Prosecutor’s Office of the State of Minas Gerais filed an ACP order to compel CSN Mineração SA to adopt mitigating measures regarding the psychological risks and losses allegedly generated by the Casa de Pedra Dam, reallocating residents, who so wish, with rents and social assistance, as well as relocating children who attended a new daycare and school that were closed, rebuilding new daycare and school in a safe place. In a preliminary injunction, the 1st Instance Magistrate ordered the blocking of three million reais for the construction of the day care center and school, a decision suspended by the 2nd Instance Court. The State Public Prosecutor of the State of Minas Gerais also pleaded for the payment of moral damages collective actions, as well as for the permanent reallocation of people, at the expense of CSN Mineração SA The lawsuit is in its initial phase and there is still no judicial sentence related to the case.

 

(2) On April 8, 2013, INEA applied a fine of R$35 million to CSN in relation to aspects involving the Volta Grande IV condominium, determining that the actions already considered and discussed in the public civil action filed in July 2012. In relation to the application of this fine, an annulment action was filed, distributed, in January 2014, to the 10th Civil Court of the State of Rio de Janeiro, aiming at the annulment of the fine and its effects. In parallel, INEA filed a tax enforcement action, with an adjusted amount of R$42 million, in order to enforce the amount of the fine imposed. The Tax Foreclosure action mentioned was distributed in May 2014 to the 4th Registry of Active Debt of Volta Redonda, in the State of Rio de Janeiro. Currently, these actions are suspended until the conclusion of the investigation to be carried out in the Environmental Public Civil Action of the Condominium Volta Grande IV, whose merit discusses possible contamination of the site.

 

(3) This is an Environmental Public Civil Action, proposed by the MPF, with a claim for indemnity for collective moral damages and material damages, for allegedly irregular deposit of steel residues, in addition to being set aside for non-compliance with the injunction.

 

(4) Infraction Notice (AIIM) drawn up by SEFAZ / RJ for ICMS and Fine requirement for the alleged improper use of ICMS credit for the period 2015 to 2020 resulting from the acquisition of intermediate products used in the UPV (refractories, belts, cylinders, chemical agents, etc.), which were classified by the Inspection as of use / consumption and without the right to credit.