Cemex 2013 Annual Report Download - page 107
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Please find page 107 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
• InNovember2009,Mexicoapprovedamendmentstotheincometaxlaw,whichbecameeffectiveonJanuary1,2010.Suchamendments
modiedthetaxconsolidationregimebyrequiringentitiestodetermineincometaxesasifthetaxconsolidationprovisionsdidnotexist
from1999onward,specicallyturningintotaxableitems:a)thedifferencebetweenthesumoftheequityofthecontrolledentities
fortaxpurposesandtheequityoftheconsolidatedentityfortaxpurposes;b)dividendsfromthecontrolledentitiesfortaxpurposes
toCEMEX,S.A.B.deC.V.;andc)othertransactionsthatrepresentedthetransferofresourcesbetweenthecompaniesincludedinthe
taxconsolidation.InDecember2010,pursuanttomiscellaneousrules,thetaxauthorityinMexicograntedtheoptiontodeferthe
calculationandpaymentoftheincometaxoverthedifferenceinequityexplainedabove,untilthesubsidiarywasdisposedoforCEMEX
eliminatesthetaxconsolidation.TaxliabilitiesassociatedwiththetaxlosscarryforwardsusedinthetaxconsolidationoftheMexican
subsidiariesarenotoffsetwithdeferredtaxassetsinthebalancesheet.Therealizationofthesetaxassetsissubjecttothegeneration
offuturetaxearningsinthecontrolledsubsidiariesthatgeneratedthetaxlosscarryforwardsinthepast.
Inaddition,inconnectionwithnewamendmentstotheincometaxlawinMexicoapprovedinDecember2013andeffectivebeginning
January1,2014,thetaxconsolidationregimeineffectuntilDecember31,2013,wasreplacedprospectivelybyanewintegration
regime,towhichCEMEXwillnotapply,resultinginthatbeginningin2014,eachMexicanentitywilldetermineitsincometaxesbased
solelyinitsindividualresults.Aperiodofupto10yearshasbeenestablishedforthesettlementoftheliabilityforincometaxesrelated
tothetaxconsolidationregimeaccrueduntilDecember31,2013,amountwhichconsideringthenewrulesissuedforthedisconnection
ofthetaxconsolidationregimeamountstoapproximately$24,804asdescribedinthetablebelow.
ChangesintheParentCompany’staxpayableassociatedwiththetaxconsolidationinMexicoin2013,2012and2011wereasfollows:
2013 2012 2011
Balanceatbeginningofperiod $ 14,546 12,410 10,079
Incometaxreceivedfromsubsidiaries 1,805 2,089 2,352
Restatementfortheperiod 1,234 745 485
Paymentsduringtheperiod (2,035) (698) (506)
Effectsassociatedwiththeterminationofthetaxconsolidationregime 9,254 – –
Balanceatendofperiod $ 24,804 14,546 12,410
• OnJanuary2011,theMexicantaxauthoritynotiedCEMEX,S.A.B.deC.V.,ofataxassessmentforapproximately$996(US$77)
pertainingtochangestotheincometaxlawapprovedin2005thatpermitsthedeductibilityofthecostofgoodssolddeductedinthe
determinationofincometaxes,insteadofusingtheamountofpurchases.SincetherewereinventoriesasofDecember31,2004,ina
transitionprovision,thelawallowedtheinventorytobeaccumulatedasincome(thusreversingthedeductionviapurchases)andthen
bedeductedfrom2005onwardsascostofgoodssold.Inordertocomputetheincomeresultingfromtheinventoriesin2004,thelaw
allowedthisincometobeoffsetagainstaccumulatedtaxlossesofsomeofCEMEX’ssubsidiaries.Theauthoritiesarguedthatbecause
ofthisoffsetting,therighttousesuchlossesattheconsolidatedlevelhadbeenlost;therefore,CEMEXhadtoincreaseitsconsolidated
incomeordecreaseitsconsolidatedlosses.DuringMay2013,CEMEXsettledthistaxassessmentaspartoftheAmnestyProvision
describedabove.
• OnNovember16,2011,theMexicantaxauthoritiesnotiedCentroDistribuidordeCemento,S.A.deC.V.andMexcementHoldings,
S.A.deC.V.,subsidiariesofCEMEXinMexico,oftaxassessmentsrelatedtodirectandindirectinvestmentsinentitiesconsideredtobe
preferentialtaxregimes,intheamountofapproximately$1,251(US$101)andapproximately$759(US$59),respectively.InFebruary
2013,CEMEXledaclaimagainsttheseassessmentsbeforethecorrespondingcourts.DuringMay2013,CEMEXsettledthesetax
assessmentsbasedontheAmnestyProvisiondescribedbelow.
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