Mexican tax authority takes unprecedented action to rescind Primero tax agreement

February 4, 2016

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The TSX-listed stock of Canadian precious-metals producer Primero Mining on Thursday fell almost 30% after it announced that its Mexico-focused subsidiary had received an unprecedented legal claim from Mexican tax authorities seeking to nullify a 2012 advance pricing agreement (APA), which confirmed the company’s basis for paying taxes on realised silver prices for the years 2010 to 2014.
Primero late on Thursday stated that despite the APA representing the Servicio de Administración Tributaria’s (SAT’s) agreement to accept that basis of taxation for those years, the 200-page legal claim did not identify any different basis for paying taxes.

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