Applied Success Portfolios
Real evidence of how we shield assets and optimize financial eligibility for our clients under strict data confidentiality agreements.
Successful Tax Defense against Unjustified VAT Assessment
CURRENT SITUATION
A company underwent a review by Guatemala's Superintendencia de Administración Tributaria (SAT), during which the tax authority sought to disallow the deductibility of certain costs associated with payments abroad, resulting in a proposed multimillion-dollar assessment. The tax authority's main concern arose because the foreign supplier had been paid directly by another company within the same corporate group, rather than by the company that recorded the cost.
IDENTIFIED PROBLEM
The SAT challenged the deductibility of a significant amount of costs because payments to foreign suppliers were made directly by another company within the same corporate group, rather than by the company that recorded those costs.
APPLIED SOLUTION
The team of specialists at MCervantes Consultoría y Auditoría, S. A., supported by strategic alliances, assembled a multidisciplinary legal team that developed a solid and robust technical defense, supported by constitutional precedents and precise expert accounting reports, strengthening the technical and legal arguments of the defense.
REAL RESULTS
- The company's position was strengthened in response to the tax authority's challenges.
- Savings of more than USD 2.3 million in taxes, interest, and penalties.
- A satisfactory outcome was achieved for the company, protecting its tax and financial interests.
DIRECT BENEFITS
- Protection of the company's tax and financial interests.
- Reduced exposure to tax contingencies arising from the challenged costs.
- A satisfactory outcome that helped preserve the company's tax position.