Mexico’s Supreme Court rules against magnate’s $2.6B tax debt challenges

Mexico’s Supreme Court has rejected legal challenges from companies owned by billionaire Ricardo Salinas Pliego over tax debts exceeding $2.6 billion, marking a significant victory for the government in its efforts to collect from the country’s wealthiest tax debtors.

The court ruled against seven of nine legal remedies known as “amparos” (similar to injunctions) filed by various companies within Grupo Salinas, the conglomerate led by Salinas. The remaining two challenges are still pending. These tax obligations stem from disputes dating back more than a decade.

Thursday’s decision cannot be appealed, though the possibility remains for Grupo Salinas and Mexico’s tax authority to negotiate a settlement. Such negotiations may prove difficult, however, as Salinas has consistently maintained that he is being unfairly targeted due to his outspoken criticism of the government.

In response to the ruling, Grupo Salinas issued a statement calling it “a black day for justice and the rule of law in Mexico” and accused the court of acting “at the service of political power and not justice.” The conglomerate also indicated it might pursue action in international courts to fight what it described as “abusive and illegal double charges.”

The case represents a critical test for President Claudia Sheinbaum’s administration, which has prioritized collecting taxes from Mexico’s largest debtors. Sheinbaum’s party recently reformed the amparo law to make it more difficult for debtors to delay tax payments through legal challenges, reflecting the government’s determination to increase tax collection.

“Debts are not politicized, they are paid, it’s that simple,” Sheinbaum stated in late September when addressing Salinas’ tax obligations. She noted that Salinas could qualify for the same potential discounts available to other overdue taxpayers if he chose to pay promptly.

Grupo Salinas has disputed the government’s claims, asserting that the tax authority has failed to specify exact amounts due and has not honored previous agreements between the parties.

The ruling also carries broader significance as it comes from a newly reconstituted Supreme Court, whose justices were elected directly by voters for the first time in Mexican history. This controversial judicial reform, opposed by opposition parties and criticized by the United States, has resulted in a court where most justices are considered to have connections to the governing party.

Adding to Salinas’ troubles, the government separately suspended operations at two casinos owned by Grupo Salinas companies this week over alleged money laundering activities, allegations the conglomerate has denied.

Ricardo Salinas Pliego, one of Mexico’s wealthiest individuals with interests spanning television (TV Azteca), retail (Elektra), and banking (Banco Azteca), has established himself as one of the most vocal critics of Mexico’s current administration. His media platforms have regularly featured content critical of government policies.

This high-profile tax case is being closely watched by investors and business leaders across Mexico, as it may signal how the Sheinbaum administration intends to handle tax compliance issues with the country’s business elite. The outcome could have implications for Mexico’s business climate and the government’s efforts to increase tax revenue to fund social programs and infrastructure projects.

As the legal battle continues, the dispute highlights ongoing tensions between Mexico’s government and powerful business interests, as well as the challenges in enforcing tax compliance among the country’s wealthiest citizens.