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Investor Presentaiton

d. Differences between the consolidated CUFIN and the reinvested CUFIN and the balances of these same accounts pertaining to the Group's consolidated companies can give rise to income subject to IT. In light of the above, at December 31, 2009, the Company recognized a liability corresponding to CUFIN differences of Ps61,924, to be paid as from 2014. Of this amount, Ps29,011 corresponds to the change in the aforementioned legislation. Management decided to reflect this amount in the statement of income. e. At December 31, 2008, the Company had unamortized consolidated tax losses of Ps544,081 expiring in 2018. Due to the uncertainty regarding the recoverability of the corresponding benefits (approximately Ps152,342), management decided not to recognize said tax loss as a deferred tax asset until such time as the events allowing for its recovery take place. During 2009, the Company amortized Ps225,181 of said losses, generating a tax benefit of Ps63,051. The balance still unamortized of Ps346,858 (tax effect of approximately Ps104,057) has been accorded the same tax treatment as in the prior year, due to the uncertainty of the possibilities of recovery. f. Following is a reconciliation of tax-consolidation-related IT balances. Initial balance at January 1, 2009 Increases: IT from differences in CUFIN and reinvested CUFIN Decreases: Withdrawal from the tax consolidation regime of merged controlled companies Final balance at December 31, 2009 The IT provision at 2009 and 2008 is analyzed as follows: IT currently payable Deferred IT Total provision Following is a reconciliation between the current and effective IT rate: Income before tax and discontinued operations IT at Statutory tax rate IT at statutory rate Plus (less) the effect of the following permanent items on IT: Non-deductible expenses Effect on reserves Annual inflation adjustment and other permanent items Change in tax consolidation Effect of change in rate Tax loss amortization IT at effective rate Year ending December 31 2009 2008 Ps 1,309,402 Ps 931,427 28% 28% 366,633 260,800 236 22,982 (60,784) 2,008 363 (85,254) 29,011 5,404 (63,051) Ps 300,431 Ps 177,917 23% 19% IT liability Ps 38,598 At December 31, 2009 and 2008, the main temporary differences on which deferred IT was recognized are analyzed as follows: 61,924 (37,874) Ps 62,648 Effective IT rate Asset and liability provisions Inventories Fixed assets - Net Prepaid expenses Surplus in cost of shares Royalties Other 2009 2008 Ps 336,319 (35,888) Ps 199,085 Ps 300,431 Ps (21,168) 177,917 IT rate Asset tax recoverable Deferred tax Deferred tax arising from reinvested tax profit Total deferred taxes December 31 2009 2008 Ps 14,132 Ps 16,354 (245,259) (294,850) (302,450) (289,998) (45,279) 3,467 174,888 148,852 14,081 5,516 29,616 96,424 (360,271) (314,235) 29.5% (106,280) 4,343 (101,937) 28% (87,986) 6,926 (81,060) (412) (412) Ps (102,349) Ps (81,472) CONSISTENCY IN OUR STRATEGY 46
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