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Notes to the consolidated financial statements
19C) Effective tax rate
Differencesbetweenthenancialreportingandthecorrespondingtaxbasisofassetsandliabilitiesandthedifferentincometaxratesand
lawsapplicabletoCEMEX,amongotherfactors,giverisetopermanentdifferencesbetweenthestatutorytaxrateapplicableinMexico,and
theeffectivetaxratepresentedintheconsolidatedstatementsofoperations,whichin2013,2012and2011wereasfollows:
2013 2012 2011
% % %
Consolidatedstatutorytaxrate  (30.0) (30.0) (30.0)
Non-taxabledividendincome  (5.6) (0.7) (1.9)
Expensesandothernon-deductibleitems1  352.7 7.7 53.4
Unrecognizedtaxbenetsintheyear  (37.8) (49.5) 32.4
Non-taxablesaleofmarketablesecuritiesandxedassets  (48.1) (14.2) (14.4)
Differencebetweenbookandtaxination  39.9 34.0 9.9
Othertaxnon-accountingbenets2  (87.0) 166.4 45.9
Others  (1.5) 0.4 (0.5)
Effectiveconsolidatedtaxrate  182.6 114.1 94.8
1 In2013,thislineitemincludestheeffectsassociatedwiththeterminationofthetaxconsolidationregimeinMexico.
2 Includes:a)theeffectsofthedifferentincometaxratesinthecountrieswhereCEMEXoperatesandotherpermanentdifferences;b)changesduringtheperiod
relatedtodeferredtaxassetsoriginatedbytaxlosscarryforwards(note19B);andc)changesinthebalanceofprovisionsfortaxuncertaintiesduringtheperiod,
asdescribedinnote19D.
19D) Uncertain tax positions and signicant tax proceedings
AsofDecember31,2013and2012,aspartofshort-termandlong-termprovisionsandotherliabilities(note17),CEMEXhasrecognized
provisionsrelatedtounrecognizedtaxbenetsinconnectionwithuncertaintaxpositionstaken,inwhichitisdeemedprobablethatthe
taxauthoritywoulddifferfromthepositionadoptedbyCEMEX(note2O).AsofDecember31,2013,thetaxreturnssubmittedbysome
subsidiariesofCEMEXlocatedinseveralcountriesareunderreviewbytherespectivetaxauthoritiesintheordinarycourseofbusiness.
CEMEXcannotanticipateifsuchreviewswillresultinnewtaxassessments,whichwould,shouldanyarise,beappropriatelydisclosedand/
orrecognizedinthenancialstatements.
AsummaryofthebeginningandendingamountofunrecognizedtaxbenetsfortheyearsendedDecember31,2013,2012and2011,
excludinginterestandpenalties,isasfollows:
2013 2012 2011
Balanceoftaxpositionsatbeginningofyear $ 1,235 21,936 17,260
Additionsfortaxpositionsofprioryears  207 325 1,162
Additionsfortaxpositionsofcurrentyear 68 110 4,812
Reductionsfortaxpositionsrelatedtoprioryearsandotheritems (42) (14,601) (2,513)
Settlementsandreclassications  (81) (4,053) (121)
Expirationofthestatueoflimitations  (103) (1,599) (120)
Foreigncurrencytranslationeffects (1) (883) 1,456
Balanceoftaxpositionsatendofyear $ 1,283 1,235 21,936
Taxexaminationscaninvolvecomplexissues,andtheresolutionofissuesmayspanmultipleyears,particularlyifsubjecttonegotiationor
litigation.AlthoughCEMEXbelieves itsestimatesofthetotalunrecognized taxbenetsarereasonable,uncertaintiesregardingthenal
determinationofincometaxauditsettlementsandanyrelatedlitigationcouldaffecttheamountoftotalunrecognizedtaxbenetsinfuture
periods.Itisdifculttoestimatethetimingandrangeofpossiblechangesrelatedtotheuncertaintaxpositions,asnalizingauditswith
theincometaxauthoritiesmayinvolveformaladministrativeandlegalproceedings.Accordingly,itisnotpossibletoreasonablyestimate
theexpectedchangestothetotalunrecognizedtaxbenetsoverthenext12months,althoughanysettlementsorstatuteoflimitations
expirationsmayresultinasignicantincreaseordecreaseinthetotalunrecognizedtaxbenets,includingthosepositionsrelatedtotax
examinationsbeingcurrentlyconducted.
[104]