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Greenberg Traurig's Mexico City Office Secures Victory in Tax Case Before Mexico's Supreme Court of Justice

MEXICO CITY – May 22, 2020 – A team of Tax Practice and Litigation Practice attorneys from the Mexico City office of global law firm Greenberg Traurig, LLP, successfully obtained a writ of amparo, which is a remedy for the protection of constitutional rights, before the Nation’s Supreme Court of Justice (SCJN). The precedent-setting victory came on behalf of client, Joaquín Alcalá, who was appealing the Mexican Tax Authority’s (SAT) decision that it was jointly liable as a real estate company for a principal tax assessment of MX $101.5 million.

The decision issued on Feb. 19, 2020 by the Second Chamber of the SCJN in case ADR5652/2019, 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, Greenberg Traurig Litigation Practice shareholder, who acted as lead counsel in the case. “We utilized 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. “This news filled me with joy and made me regain my strength to keep moving forward,” Alcalá said. “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.”

Morales López led the team of Greenberg Traurig attorneys that included Litigation Practice Associates Hugo Hernández and Perla Salgado Roman.

About Greenberg Traurig Mexico: Greenberg Traurig’s Mexico City office offers clients innovative, strategic advice and legal services that span both traditional fields and contemporary regulatory sectors. The office has more than 60 bilingual attorneys who have been contributors to major national projects in Mexico and leverages the resources and reach of the firm’s global platform to provide clients with tailored legal services reflective of the specific industry and market conditions in which they operate. The Mexico City office is an integral part of the firm’s award-winning Latin America Practice, and has been recognized with leading banking, corporate, M&A, infrastructure, real estate, privacy, energy, administrative litigation, and competition practices in Mexico.

About Greenberg Traurig, LLP: Greenberg Traurig, LLP (GT) has approximately 2200 attorneys in 41 locations in the United States, Latin America, Europe, Asia, and the Middle East. GT has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360 400 and among the Top 20 on the Am Law Global 100. Web: Twitter: @GT_Law.