|Income tax and social contribution||10.0||13.6||5.8|
|Social contribution on net income (i)||308.5||280.1||211.3|
|INSS (social security contribution) (ii)||125.2||109.9||81.5|
|PIS e COFINS (iii)||29.4||48.5||57.8|
|Refinanced INSS (social security contribution on rural worker's compensation)||19.6||11.5||14.9|
|IRRF (Income tax withheld at source)||27.7||26.1||12.4|
|FGTS (Government Employee Severance Indemnity Fund)||7.4||6.2||5.5|
|Less – current portion||89.5||78.5||63.3|
|Long – term portion||453.3||427.0||343.6|
The Company is challenging, through both administrative and legal proceedings, the constitutionality of the institution, the basis for calculation and expansion thereof, as well as the increases in the rates of certain taxes, social contributions and charges, with the aim to ensure non collectability or the recovery of amounts paid in previous years. By means of administrative and legal proceedings, the Company has obtained injunctions and similar measures to suspend collection or offset payment of taxes and social contributions and charges. Provisions have been recorded for the amount of taxes not collected based on preliminary legal decisions, and updated based on changes in the SELIC interest rate until a final and definitive decision is obtained on the main following issues:
(i) The Company is claiming constitutional immunity from the social contribution tax on exports. The lawsuit in relation to social contribution on exports is in the Federal Supreme Court, awaiting judgment of an Extraordinary Appeal, in which a suspensive effect was awarded in the Company's favor. From the amount involved of US$300.2 in 2010, the Company has court-mated escrow deposits totaling US$103.5 (Note 13).
In relation to the IPI credits, the Company agreed to the financing terms introduced by Provisional Measure 470/09. The requirements for obtaining the financing were fulfilled within the legal timeframe, that is, by November 30, 2009.
(ii) This refers to the increase in the work-related accident insurance (SAT) rate. The Company is challenging the legality and absence of technical criteria for such rates since 1995, the liability for which is suspended due to a lower court decision in a civil suit. The amount involved in this case is US$106.3 at December 31, 2010, parent company and consolidated.
On February 18, 2009, the Company filed a suit contesting the payment of social security on dismissal notices paid. As a result of a lower court injunction in favor of the Company, the amounts relating to notices to be paid were excluded from the calculation base for the employer's social security contribution and a provision was recorded, pending a definitive successful outcome of the court case. The case is awaiting filing with the Federal Regional Court, 3rd Region, for analysis of the voluntary appeal. The amount involved in this case at December 31, 2010 is US$6.9.
(iii) Refer to contributions to the PIS/PASEP fund (Social Integration Program/Public Servant Fund) which the Company is contesting for certain periods. The 3rd District Federal Regional Court handed down a final decision recognizing the material rights, and the Company is awaiting a decision in the Higher Court of Justice to establish if the prescriptive period has expired for part of the credit.
As a result of enrollment in the financing scheme introduced by Provisional Measure 470/09 and Law 11.941/09, in relation to the taxes mentioned in items (i) and (iii) above, provisions for charges of US$20.0 were reversed in 2009, US$13.9 in the item financial expense and US$6.1 in the item operating expense. The Company continues to dispute criteria for application of the benefits of the financing in the scope of the lawsuits.
Additionally, in accordance with Provisional Measure 470/09, the subsidiary ELEB settled tax debts with deferred income tax credits on tax losses of US$5.2.
In respect of the above questions, the other provisions will be maintained until the final unappealable decision.