Mexican President Says IBM Settled Tax Dispute for $30.6 Million
Taxation Senior Counsel Eugenio Grageda was quoted in a TaxNotes article about a recent IBM tax settlement. Shortly after two major companies announced tax settlements with the Mexican government, the country’s president said IBM’s local subsidiary paid MXN 669 million (around $30.6 million) to put its tax affairs in order. President Andrés Manuel López Obrador said tax collections have not declined despite the impact of COVID-19, which has slowed down the country’s economic activity.
“According to the president, he . . . [is attempting] to put together a group of tax lawyers to analyze the cases of other companies,” Mr. Grageda said. “Many big companies with ongoing tax audits have an interest in settling their controversies with the authorities. Under the current situation, they could be in need of freeing up money sometimes provisioned or reserved to cover any potential tax due that they cannot otherwise use for other purposes or investments.”
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