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The deferred tax liability mainly relates to taxable temporary diferences arising from consolidation adjustments of the tax group.

16. Guarantee Commitments to Third Parties

The breakdown of guarantees provided as of 31 December 2010 and 2009 is as follows:

Type 2010 2009

Collateral for contracts, concessions and tenders 32,232 41,059 Legal guarantees 127 340 Guarantees deposited at the tax authorities 5,916 5,634

38,275 47,033

Within the frst category of guarantees at 31 December 2010 and 31 December 2009 there is a three-year bond totalling EUR 6,010 thousand that guarantees the liabilities arising from the concession to indirectly manage public service television, in accordance with Law 107/1988 of 3 May and a General Secretariat of Communications Resolution dated 25 January 1989. The concession was renewed for another 10 years by the decision of the Spanish Cabinet on 10 March 2000, made public through a General Secretariat of Communications Resolution of the same date and published in the Ofcial State Gazette (B.O.E.) on 11 March 2000.

Subsequently, with efect from 3 April 2010, the concession was renewed for another 10 years by the Council of Ministers’ resolution of 26 March 2010, publicly announced in the General Secretariat of Communications’ Resolution of 7 April 2010 and published in the Ofcial State Gazette on 14 April 2010.

The Company has provided guarantees at 31 December 2010 and 31 December 2009 in an amount totalling EUR 279 thousand to the Directorate-General for the Development of the Information Society (Science and Technology Ministry, currently the Ministry of Industry, Tourism and Trade) for an indefnite period to guarantee the refundable advance granted by the Directorate-General to the company as aid for research and development in the following projects: “Research and development of new tools for the technological evolution of production processes in digital television,” “Research and development on an information system to manage contracts with electronic signatures and a security and contingency plan”.

(Thousands of euros)

Balance at 1 January

Income statement

Equity Reclassifcations

Balance at 31 December 2010

Deferred tax liabilities

Other 1,440 (246) - - 1,194

1,440 (246) - - 1,194

2009

Deferred tax liabilities

Other - - - 1,440 1,440

- - - 1,440 1,440

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GESTEVISION TELECINCO, S.A.