The debt faced by Atracciones y Emociones Vallarta includes updates and fines, and is the highest recorded in the betting sector.
Mexico.- Atracciones y Emociones Vallarta (AEV), one of the main casino operators in Mexico, is facing a historic tax debt of MX$2.892m (USD 140.6m), imposed by the Tax Administration Service (SAT).
This debt corresponds to an omission in 2012, when the company did not withhold 30 percent of the Special Tax on Production and Services (IEPS) that gamblers visiting their casinos must pay.
The tax credit, which has been identified as the most substantial in the betting sector in the country, was notified on January 3, 2023. In response, AEV has turned to the Federal Administrative Justice Court to try to annul the debt, arguing that the notification through the tax mailbox was illegal, among other points of conflict.
This case dates back to 2017, when the SAT had already set a similar debt, but AEV achieved a favorable ruling that forced the authority to review certain irregularities in the procedures. One of the key points in dispute is the lack of clarity around the basis on which the IEPS should be calculated since the creation of this tax in 2008.
See also: Court in Mexico revokes restrictions and opens the door to new games in casinos
Although the Court resolved in 2017 that the retention should be applied on the total amount charged on the gamblers' cards, not on their winnings or losses, the sector continues to face confusion around the regulation.
