First Majestic considers next steps in Mexico tax dispute
Canadian miner First Majestic Silver said on Friday it was considering its legal plan of action going forward in an ongoing tax dispute with Mexico.
The dispute with the Mexican tax authority relates to a 2012 advance pricing agreement (APA) that was granted to a subsidiary of the company, Primero Empresa Minera (PEM).
First Majestic on May 13 served the authority with a notice of intent to submit a claim under the provisions of Chapter 11 of the North American Free Trade Agreement. This initiated a 90-day process for the Mexican government to enter into negotiations with the company to resolve the dispute – which involves reassessments issued by Mexico’s tax authority totalling about $210-million.
The deadline expired on August 11 without any resolution of the tax dispute, First Majestic said.
The company noted it had proposed three settlement offers since 2018.
First Majestic said that it had been informed that PEM would be served with a decision made on September 23 by the Federal Court on Administrative Matters to nullify the APA and to direct the tax authority to re-examine the evidence and basis for the issuance of the APA.
The court’s decision, which could be appealed, was not arrived at following regular procedures and did not provide opportunity for the presentation of evidence from PEM, the Vancouver-based miner said.
The company also stated that the decision was inconsistent with prior legal precedents and violated the Federal Mexican Constitution.
First Majestic owns and operates the San Dimas silver/gold mine, the Santa Elena silver/gold mine, as well as the La Encantada silver mine, in Mexico, which are on track to produce between 11-million and 11.7-million ounces of silver this year.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation