Telefónica Mexico tax bill ‘wiped out’

Alan Burkitt-Gray
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Telefónica has won an appeal to Mexican tax authorities to have a $1.42bn tax bill cancelled, says Reuters

Telefónica has had a $1.42 billion tax bill from Mexico cancelled and is in discussions about 20 other tax bills.

Reuters is reporting that Mexico’s tax authorities claimed Telefónica had mis-reported its income in its 2007 tax return, and the agency assessed its liability as 30 billion pesos (($1.42 billion).

But the agency says Telefónica has challenged the assessment successfully via a mediation with an independent tax ombudsman, Prodecon. “The entire tax bill has been wiped out,” said Reuters, citing three un-named sources.

Reuters adds that “Telefónica is negotiating with tax authorities over at least two dozen open audits regarding its tax arrangements in Mexico.” In a statement to the agency, the telco said: “Telefónica is cooperating and collaborating closely with authorities to supply all documentation and information.”