Provision for legal claims

12 Months Ended

Jun. 30, 2018

Provision For Legal Claims

Provision for legal claims

25. Provision for legal claims

The Company and its subsidiaries are involved in civil, labor, environmental and tax lawsuits and in administrative proceedings of labor, tax and environmental natures. The provision for probable losses arising from these lawsuits is estimated and updated by management, supported by the opinion of the Company’s external legal advisors.

Probable likelihood of loss

	Labor			Administrative			Tax			Civil			Total
At June 30, 2016		1,143			—			312			—			1,455
Additions		431			—			—			619			1,050
Monetary restatement		138			—			—			79			217
Reversal/payments		(313	)		—			(117	)		(698	)		(1,128	)
At June 30, 2017		1,399			—			195			—			1,594
Additions		131			300			—			22			453
Monetary restatement		173			—			—			—			173
Reversal/payments		(713	)		(300	)		—			—			(1,013	)
At June 30, 2018		990			—			195			22			1,207

Possible likelihood of loss

The Company and its subsidiaries are parties to legal suits of civil, labor, environmental and tax natures, and administrative tax proceedings for which no provisions were set up, since they involve risk of loss classified as possible by the Company and its external legal advisors. The contingencies are as follows:

	2018		2017
Civil		11,232		10,719
Tax		4,858		4,315
Labor		964		1,514
Environmental		279		—
		17,333		16,548

Judicial deposits

	2018		2017
Labor		277		611
Tax		1,099		1,051
Civil		129		127
(Note 7)		1,505		1,789