Supreme Court Rapidly Resolves billions in Tax Disputes with Grupo Elektra adn TV Azteca
The Supreme Court of Justice of the Nation (SCJN) swiftly concluded seven of nine long-standing, multimillion-dollar tax lawsuits brought by Grupo Elektra and TV Azteca on Thursday, October 26, 2024, in a session lasting just one hour and 38 minutes. The court prioritized technical arguments to avoid “politicizing” the rulings, according to sources.
The unanimous decisions uphold rulings from lower courts, compelling the companies to pay approximately 48.326 billion pesos (approximately $2.58 billion USD) in back taxes, including income tax (ISR), updates, surcharges, and penalties accrued between 2008 and 2013. Only two cases remain – involving Nueva Elektra del milenio and Totalplay – and are scheduled for review next Wednesday. These pending matters total over 712 million pesos.
The court dismissed the challenges from the Grupo Salinas firms,finding they lacked “exceptional constitutional interest” due to prior SCJN rulings on similar ISR Law issues. This decision establishes a precedent that will likely expedite the resolution of comparable lawsuits, even those originating from the same business group.
The seven cases were resolved through the review of 15 separate legal projects, encompassing direct protections, impediments, and claim resources. A senior official stated that the plenary session proactively agreed to avoid public statements that could be perceived as critical of the conglomerate.
The most complex case, involving a tax credit of 33.306 billion pesos for the 2013 fiscal year, required 26 minutes of deliberation. The plenary session ultimately rejected the protection after the Ministry of Finance successfully challenged a prior agreement by former Chief Justice norma Piña to hear the case.
According to Minister Rapporteur Arístides Guerrero García, the matter had already been considered and dismissed by the Second Chamber in 2023 due to its lack of meaning within the fiscal consolidation regime.The Twentieth Collegiate Court also denied protection based on these criteria in 2024, a decision subsequently challenged by the company.”It was admitted by the previous president of the Supreme Court… despite the fact that, as stated before, the second chamber had already denied the request in the exercise of the power of attraction,” Guerrero García noted.
Minister President Hugo Aguilar Ortiz acknowledged the extensive litigation surrounding the case, stating, “this matter, as it is in the public domain, was widely litigated; in this particular case, 28 challenges were promoted.”
Over the past five years,Grupo Salinas has filed 102 appeals – including challenges to rulings,protections under review,claims,and jurisdictional conflicts – in an apparent effort to delay resolution of the tax disputes. Along with the cases directly addressed,the court also resolved protections filed by Elektra regarding tax credits from 2008 to 2012,and also two protections from TV Azteca concerning credits of 2.447 billion pesos (from 2009) and 2.615 billion pesos (from 2013).
Why: Grupo Elektra and TV Azteca faced long-standing tax lawsuits over unpaid taxes.
Who: The Supreme Court of Justice of the Nation (SCJN), Grupo Elektra, and TV Azteca were
