Walmart pays 8 thousand mp to the SAT for the sale of VIPs

Walmart de México paid 8,779 million pesos to the Tax Administration Service (SAT) to resolve tax liabilities related to the selling of Vips to Alsea, conducted in 2014.  The total is almost equal to the 8.200 million pesos at which it sold the Vips chain’s 361 restaurants. “Walmart de México informs its shareholders and the general public that it has negotiated with the Tax Administration Service and has today charged an sum of 8,779 million pesos to settle significant tax issues, including the investigation of the previously disclosed Vips restaurant chain sales transaction and other substantial tax issues.
“The payment will be recorded in our consolidated income statement for the three months that will end on June 30, 2020,” he said in information sent to the Mexican Stock Exchange (BMV). In February, the SAT reported that Walmart de México had paid 10,559 million pesos in taxes, fines and surcharges for the sale of Vips to Alsea, in view of the fact that the transaction was carried out below the actual value of the restaurant chain. At the time, the country’s largest retail chain maintained that its external attorneys and the company’s management considered that all the elements were in place to support the validity of the Vips sale, so it would not have to pay any amount to SAT.

In fact, Walmart de México filed an appeal for revocation with the tax authorities in order for the Mexican treasury to make an adequate assessment of all the arguments in the case. However, the treasury carried out a review of the Vips sale operation and issued a liquidation document in which it demanded the payment of differences in the payment of taxes. The retail chain, for its part, had filed an appeal for revocation in order for the treasury to carry out an “adequate assessment”. As for Alsea, the SAT assessed the requirement to pay tax obligations for the same operation at 3,881 million pesos.