Supreme Court fully backs IETU tax law

The Supreme Court (SCJN) rejected all constitutional arguments against the Single Rate Corporate Tax, or IETU, which went into effect at the beginning of 2008 as part of the 2007 fiscal reform package. Some 40,000 lawsuits had been brought against the IETU, which operates as a kind of alternative minimum tax for corporations and professionals.  After six sessions devoted to the IETU, the Ministers said in a press release summarizing their decisions that the tax met the constitutional principles of “legality, equity, and proportionality.” Undersecretary of Finance for Revenue José Antonio Meade has said that a reversal of the tax would cost the government about Ps. 90 billion in revenues per year. (Universal 2/9, Reforma 2/9, SCJN 2/9)

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