Basham secures $7 million refund from Mexican authorities

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Basham secures $7 million refund from Mexican authorities

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The fiscal authority in Mexico has returned approximately 7 million dollars as return of tax balances in favor of the value-added tax, due to disposals made by customs

An important Mexican company, a leader in the development of tools for the industrial sector, requested the return of various tax balances in favor of the value-added tax, which were generated considering the disposals that customs carried out, that implied definitive exports in terms of the Mexican Customs Law.

In response to this refund request, the Mexican tax authorities (SAT), after requesting multiple information from the taxpayer, decided to initiate a long audit. At the beginning of 2016, the SAT denied the requested refund, under the consideration that the materiality of the exports had not been proven.

In opposition to the administrative decision that denied the return, an appeal for revocation was filed in the same year, which was resolved in the sense of confirming the denial of the requested refund. Against the resolutions that denied the return and confirmed this refusal, a nullity claim was filed, which was definitively resolved in 2018 in the sense of declaring the nullity of the contested resolutions, and recognizing the valid right that has the company to obtain the return of the balances in favor that it requested, which had to be done considering the generated update since the request of return was presented, as well as the corresponding interests. In compliance with the final disposition, the SAT has recently returned to the taxpayer an amount of approximately 7 million dollars, which is a success precedent, since the rule of law was achieved, the cornerstone for the development of any organized society.

 

Advisors of the company: Basham Ringe & Correa.

Partner: Gerardo Nieto Associate: Rodrigo Torres

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