The unit of Cemex in Spain must pay fines totaling 456 million euros (about 498 million dollars) in relation to a tax settlement in the European country more than a decade ago previously disclosed by the firm, the company reported this Monday.

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Cemex has been formally notified that the appeal filed before the Spanish Supreme Court on March 27, 2023, has not been resolved in its favor, said the cement factory in a communication sent to the United States Securities and Exchange Commission (SEC).

“These fines are the result of a tax audit process in Spain that began on July 7, 2011, covering the fiscal years between 2006 and 2009 inclusive,” he explained. The 498 million dollars are as of November 17, based on an exchange rate of 0.9157 euros per dollar.

The tax authorities in Spain had challenged part of the tax losses declared by Cemex Spain for said years, which were not used by Cemex Spain and since 2012 were not accounted for in the financial statements of the company’s Spanish unit, according to the statement.

“Cemex Spain totally disagrees with the resolution and is evaluating next steps, including the possible presentation of a appeal before the Constitutional Court of Spain“added the company.

Cemex stated, however, that it expects to pay the fines in the first half of 2024 for the 2006-2009 fiscal period and that it “has sources of liquidity available” to cover them.

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“Despite these financial effects, this situation is not expected to adversely affect Cemex’s operations and commercial relationships with customers or suppliers or its ability to meet its financial obligations,” he concluded.