2000		1999
Indirect taxes-
Value-added taxes		274,807		48,911
Other taxes on operating revenues		270,598		93,991
Income taxe and social contribution		285,329		41,754
Deferred income taxes Law no. 8,200/91 -supplementary monetary restatement		48,025		52,277
Total		878,759		236,933
Current		709,446		189,503
Noncurrent		169,313		47,430

On July 1, 1999, the Supreme Court of Brazil ruled on the extraordinary appeals nos. 233,807, 227,832, 230,337 and 205,355 which discussed the constitutional immunity of the Cofins tax related to operations regarding energy supply, telecommunication services and petroleum, fuel and minerals, judging that the referred taxes are payable. The Federal Government published Provisional Measure no. 1,858-6, on June 29, 1999, allowing taxpayers to pay the judicially questioned amounts plus interest (Selic rates) as from February 1999, with no fines as long as they discontinued any legal appeals.

The Company made use of the above ruling to settle its liabilities related to Cofins and PIS with the Federal Government, which had been accrued in the amount of R$352,625. The
above-mentioned amount has been recognized in the income statement over the period during which it has been discussed in court. As a result, the Company paid R$290,541, in a lump sum on July 30, 1999, and recognized gains in the amount of R$62,084 as other operating revenues, related to the reversal of interest (Selic rates) for the period prior to February 1999.

Embratel is questioning the changes introduced by Law no. 9,718/98 that: (a) increased the revenues on which PIS and Cofins are paid to include financial revenues and exchange rate variations, and (b) increased the rate of Cofins from 2% to 3%.