- Title: Mexico's tax authority scrutinising mining, auto, energy firms
- Date: 30th May 2017
- Summary: MEXICO CITY, MEXICO (MAY 26, 2017) (REUTERS) EXTERIOR OF TAX ADMINISTRATION SERVICE (SAT) HEADQUARTERS PEOPLE WALKING OUT OF SAT HEADQUARTERS SAT LOGO ON SIDE OF BUILDING REUTERS REPORTER AT RECEPTION DESK AT SAT HEADQUARTERS SAT HEAD, OSVALDO SANTIN, DURING INTERVIEW GENERAL VIEW OF SANTIN DURING INTERVIEW WITH REUTERS REPORTERS (SOUNDBITE) (Spanish) SAT HEAD, OSVALDO SANTIN, SAYING: "Our concerns at the moment are at the structural level and that is why we are moving forward with this approach, which allows us to understand how these deep transformations in business. This is reflected in the value generated by these companies and this is reflected in the amount of fiscal obligations." REUTERS REPORTER SPEAKING DURING INTERVIEW (SOUNDBITE) (Spanish) SAT HEAD, OSVALDO SANTIN, SAYING: "We are effectively identifying particular activities, particular operations which have reduced payments from mining companies. This is something that we are also revising in consultation with them so as to better understand what is behind this reduction. And if the response is not satisfactory, we will have to exercise authority if there is no voluntary self-correction."
- 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: LVA0016IW6IPV
- 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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