14 Income taxes

Million CHF

2014

2013

Current taxes

(552)

(798)

Deferred taxes

(36)

266

Total

(588)

(533)

Current taxes include an income of CHF 72 million (2013: -148) in respect of prior years. Last year tax expense of CHF 148 million largely related to Holcim Mexico as a result of changes in tax rules.

Deferred tax by type

Million CHF

2014

2013

Property, plant and equipment

4

24

Intangible and other long-term assets

3

(30)

Provisions

(16)

5

Tax losses carryforward

32

301

Other

(60)

(33)

Total

(36)

266

Reconciliation of tax rate

 

2014

2013

Group's expected tax rate

33%

30%

Effect of non-deductible items

1%

2%

Effect of non-taxable items and income taxed at different tax rates

(6%)

(4%)

Net change of unrecognized tax losses carryforward

3%

(6%)

Prior year taxes

(3%)

7%

Other items

0%

(3%)

Group's effective tax rate

27%

25%

The Group’s expected tax rate is a weighted average tax rate based on profits (losses) before taxes of Group companies. The increase of the Group’s expected tax rate is largely due to a shift of net income before taxes to regions with higher tax rates.

In 2013, the changes in tax rules in Mexico largely resulted in the increase in prior year taxes and in the net change of unrecognized tax losses carryforward.