Hasbro agrees to pay Mexican SAT $4.38 million over tax avoidance claims

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Hasbro agrees to pay Mexican SAT $4.38 million over tax avoidance claims

A spokesperson for US toy company Hasbro announced the company had agreed to pay the Mexican tax authorities (SAT) $65 million ($US 4.38 million) to settle tax avoidance claims. Hasbro is unlikely to be the only multinational to pay up.

In 2014, the SAT announced it was investigating 270 multinationals that, it alleged, had been exploiting legal loopholes to pay less tax in Mexico than was owed, considering the profits made in the country.

Hasbro was investigated by the SAT over its tax arrangements between 2000 and 2013.

The toy company was first reported to be included in the SAT’s investigations in September 2014, along with Procter & Gamble.

In December, the SAT announced it had reached an agreement with an unnamed multinational for a sum equivalent or close to 55% of the company’s sales for one fiscal year.

On February 4, Hasbro announced it had agreed to pay the SAT $65 million ($US 4.38 million) over the tax avoidance claims.

When contacted, the SAT refused to comment on the deal.

more across site & bottom lb ros

More from across our site

US partner Matthew Chen was named as potentially the first overseas PwC staffer implicated in the tax leaks scandal, in a dramatic week for the ‘big four’ firm
PwC alleged it has suffered identifiable loss and damage arising out of a former partner's unauthorised use of confidential information; in other news, Forvis Mazars unveiled its next UK CEO
Luxembourg saw the highest increase in tax-to-GDP ratio out of OECD countries in 2023, according to the organisation’s new Revenue Statistics report
Ryan’s VAT practice leader for Europe tells ITR about promoting kindness, playing the violincello and why tax being boring is a ‘ridiculous’ idea
Technology is on the way to relieve tax advisers tired by onerous pillar two preparations, says Russell Gammon of Tax Systems
A high number of granted APAs demonstrates the Italian tax authorities' commitment to resolving TP issues proactively, experts say
Malta risks ceding tax revenues to jurisdictions that adopt the global minimum tax sooner, the IMF said
The UK and what has been dubbed its ‘second empire’ have been found to be responsible for 26% of all countries’ tax losses by the Tax Justice Network
Ireland offers more than just its competitive corporate tax environment but a reduction in the US rate under a Trump administration could affect the country, experts tell ITR
The ‘big four’ firm was originally prohibited from tendering for government work until December 1 due to its tax leaks scandal, but ongoing investigations into the matter have seen the date extended
Gift this article