Greenberg Traurig secures tax injunction for Mexican client
A tax and litigation team from the Mexico City office of Greenberg Traurig has successfully obtained a writ of injunction before the Supreme Court of Justice (SCJN) on behalf of a client appealing a tax authority (SAT) decision that it was jointly liable as a real estate company for a principal tax assessment of 101.5 million pesos ($4.46 million).
The precedent-setting victory came on behalf of client Joaquín Alcalá, who was appealing the Mexican Tax Authority’s (SAT) ruling.
The decision granted federal judicial protection to Alcalá, who was a member of the board of directors of the taxpaying real estate company. The court said it found in favor of the client based on its conclusion that the tax authority’s power to determine joint liability and require payment of the assessment owed, had expired. The ruling eliminated any tax debt or associated issues for the client.
“We are very happy with this successful outcome. Furthermore, we appreciate our client’s trust in the team at all times, which enabled us to achieve this precedent setting decision for tax matters in Mexico,” said Joselino Morales López (pictured), Greenberg Traurig litigation practice shareholder, who acted as lead counsel in the case.
“We utilised our team’s skills and legal experience to craft new arguments and establish legal precedents in the Mexican legal system. This success is extremely rewarding.”
This is a landmark decision for the Mexican legal system because it represents the first precedent issued by the SCJN related to the calculation of the expiration period of the powers of tax authorities to determine joint and several liability in a tax assessment.
As a result of this ruling, the tax credit imposed against the jointly responsible person was left unsubstantiated, thus eliminating any debt or contingency for Alcalá.
“Greenberg Traurig has been key to achieving this result since the team’s arguments led to the favorable outcome in the matter. The firm and its lawyers have my utmost respect and admiration,” Alcalá said.
Morales López led the team of Greenberg Traurig attorneys that included Litigation Practice Associates Hugo Hernández and Perla Salgado Roman.
