Cemex 2013 Annual Report Download - page 105
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Please find page 105 of the 2013 Cemex annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to the consolidated financial statements
19C) Effective tax rate
Differencesbetweenthenancialreportingandthecorrespondingtaxbasisofassetsandliabilitiesandthedifferentincometaxratesand
lawsapplicabletoCEMEX,amongotherfactors,giverisetopermanentdifferencesbetweenthestatutorytaxrateapplicableinMexico,and
theeffectivetaxratepresentedintheconsolidatedstatementsofoperations,whichin2013,2012and2011wereasfollows:
2013 2012 2011
% % %
Consolidatedstatutorytaxrate (30.0) (30.0) (30.0)
Non-taxabledividendincome (5.6) (0.7) (1.9)
Expensesandothernon-deductibleitems1 352.7 7.7 53.4
Unrecognizedtaxbenetsintheyear (37.8) (49.5) 32.4
Non-taxablesaleofmarketablesecuritiesandxedassets (48.1) (14.2) (14.4)
Differencebetweenbookandtaxination 39.9 34.0 9.9
Othertaxnon-accountingbenets2 (87.0) 166.4 45.9
Others (1.5) 0.4 (0.5)
Effectiveconsolidatedtaxrate 182.6 114.1 94.8
1 In2013,thislineitemincludestheeffectsassociatedwiththeterminationofthetaxconsolidationregimeinMexico.
2 Includes:a)theeffectsofthedifferentincometaxratesinthecountrieswhereCEMEXoperatesandotherpermanentdifferences;b)changesduringtheperiod
relatedtodeferredtaxassetsoriginatedbytaxlosscarryforwards(note19B);andc)changesinthebalanceofprovisionsfortaxuncertaintiesduringtheperiod,
asdescribedinnote19D.
19D) Uncertain tax positions and signicant tax proceedings
AsofDecember31,2013and2012,aspartofshort-termandlong-termprovisionsandotherliabilities(note17),CEMEXhasrecognized
provisionsrelatedtounrecognizedtaxbenetsinconnectionwithuncertaintaxpositionstaken,inwhichitisdeemedprobablethatthe
taxauthoritywoulddifferfromthepositionadoptedbyCEMEX(note2O).AsofDecember31,2013,thetaxreturnssubmittedbysome
subsidiariesofCEMEXlocatedinseveralcountriesareunderreviewbytherespectivetaxauthoritiesintheordinarycourseofbusiness.
CEMEXcannotanticipateifsuchreviewswillresultinnewtaxassessments,whichwould,shouldanyarise,beappropriatelydisclosedand/
orrecognizedinthenancialstatements.
AsummaryofthebeginningandendingamountofunrecognizedtaxbenetsfortheyearsendedDecember31,2013,2012and2011,
excludinginterestandpenalties,isasfollows:
2013 2012 2011
Balanceoftaxpositionsatbeginningofyear $ 1,235 21,936 17,260
Additionsfortaxpositionsofprioryears 207 325 1,162
Additionsfortaxpositionsofcurrentyear 68 110 4,812
Reductionsfortaxpositionsrelatedtoprioryearsandotheritems (42) (14,601) (2,513)
Settlementsandreclassications (81) (4,053) (121)
Expirationofthestatueoflimitations (103) (1,599) (120)
Foreigncurrencytranslationeffects (1) (883) 1,456
Balanceoftaxpositionsatendofyear $ 1,283 1,235 21,936
Taxexaminationscaninvolvecomplexissues,andtheresolutionofissuesmayspanmultipleyears,particularlyifsubjecttonegotiationor
litigation.AlthoughCEMEXbelieves itsestimatesofthetotalunrecognized taxbenetsarereasonable,uncertaintiesregardingthenal
determinationofincometaxauditsettlementsandanyrelatedlitigationcouldaffecttheamountoftotalunrecognizedtaxbenetsinfuture
periods.Itisdifculttoestimatethetimingandrangeofpossiblechangesrelatedtotheuncertaintaxpositions,asnalizingauditswith
theincometaxauthoritiesmayinvolveformaladministrativeandlegalproceedings.Accordingly,itisnotpossibletoreasonablyestimate
theexpectedchangestothetotalunrecognizedtaxbenetsoverthenext12months,althoughanysettlementsorstatuteoflimitations
expirationsmayresultinasignicantincreaseordecreaseinthetotalunrecognizedtaxbenets,includingthosepositionsrelatedtotax
examinationsbeingcurrentlyconducted.
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