Cemex disputes tax claim

Cemex disputes tax claim
Published: 28 November 2011

Cemex said on Friday it would file a legal challenge to dispute a tax bill of US$142m authorities say the company owes from 2004.

Cemex , one of the world’s biggest cement makers, said in a statement it had been notified by Mexican authorities it owed the money for income generated by the foreign investments of two of its subsidiaries.

"If (the challenge) is resolved unfavorably after all legal options have been taken, these tax credits could have an adverse effect on Cemex’s cash flow, financial condition and net profit," the company said.

The company has been struggling with debt since the collapse of the U.S. housing market just after Cemex’s 2007 acquisition of Australian rival Rinker.

It now has a total debt of more than US$18bn, although it has no significant maturities until 2014 and it has been steadily meeting interest payments.

Source: Reuters