Mexico's tax authority scrutinising mining, auto, energy firms

Record ID: 877118

  • Title: Mexico's tax authority scrutinising mining, auto, energy firms
  • Date: 30th May 2017
  • Summary: MAZAPIL, ZACATECAS, MEXICO (FILE) (REUTERS) TRUCK AT MINING FIELD WHEELS OF TRUCK EARTHMOVER LIFTING UP ROCKS AT MINE AND PUTTING IT IN BACK OF TRUCK TRUCKS AT MINING SITE MACHINE BREAKING GROUND AT MINE MINER USING MACHINE TO BREAK GROUND AT MINE TRUCK IN MINING CAVE EARTHMOVER MOVING ROCKS IN MINING CAVE MINER CONTROLLING MACHINERY IN MINING CAVE INFRASTRUCTURE AT MINING SITE
  • Embargoed: 13th June 2017 01:31
  • Keywords: telecommunications mining energy revenue SAT Mexico tax
  • Location: MEXICO CITY; MAZAPIL, ZACATECAS, MEXICO
  • City: MEXICO CITY; MAZAPIL, ZACATECAS, MEXICO
  • Country: Mexico
  • Topics: Budget/Taxation/Revenue,Government/Politics
  • Reuters ID: LVA0026IW6IPV
  • Aspect Ratio: 16:9
  • Story Text:Mexico is scrutinising firms in the energy, mining and telecommunications sectors to see if they are paying their fair share of taxes after a series of reforms introduced by President Enrique Pena Nieto shook up those industries.
    Authorities are also in constant contact with firms in Mexico's auto industry, which typically have small margins and complex global supply chains, making it difficult to calculate their appropriate tax burden, said Osvaldo Santin, the head of the Tax Administration Service (SAT).
    Santin said SAT is seeking to better understand how the reforms impacted the different sectors and their taxable income. He did not name what firms SAT was scrutinising.
    Pena Nieto's energy reform put an end to the monopoly state-owned oil company Pemex enjoyed in everything from crude production to retail sales, opening up the sector to private capital. Meanwhile, an overhaul of the telecommunications sector was aimed at taming billionaire Carlos Slim, whose America Movil firm still dominates the cell phone market.
    New royalties for mining companies also went into effect in 2014, as part of a broader tax reform.
    SAT, which brought in about $7.74 billion dollars through audits last year, up over 2 percent from a year earlier, is considering extending Pena Nieto's programme to repatriate undeclared capital from abroad beyond a current deadline of July.
    The tax repatriation programme, which attracted nearly $161.5 million dollars in investment into the country through April, is expected to generate $10 billion dollars in investment.
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