Tag Archives: Mexico

ILN Today Post

Living in Splendid Isolation: Ten Lessons Learned Enforcing an Ontario Judgment in Mexico

Introduction

This article presents a cautionary tale for any person who wishes to take legal proceedings against an individual or company resident in Mexico.

More than 25 years ago, the Supreme Court of Canada’s decision in Morguard Investments Ltd. v. De Savoye[1], represented a sea change in the way Canadian courts recognized and enforced foreign judgments.  The “foreign” aspect of Morguard involved British Columbia plaintiffs seeking to enforce an Alberta judgment.  Writing for the court, Justice La Forest rejected the centuries’ old principles regarding recognizing and enforcing foreign judgments which were anchored in the concept of territoriality.  He held that modern states like Canada should no longer live in “splendid isolation” from the rest of the world and should give effect to judgments made in other countries.  In arriving at its conclusion, the court relied heavily upon the concept of comity which had been adopted by the Supreme Court of the United States.  It held that comity would “impel sovereigns to mutual intercourse”. 

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ILN Today Post

Mexico-Based Homex Reaches Settlement with the SEC

The Daily Journal interviewed Stradling shareholder Kathleen Marcus, co-chair of the Enforcement Defense & Investigations practice group and chair of the Compliance & Corporate Governance practice group, for an article about Desarrolladora Homex, a prominent Mexico-based homebuilding company, accused of falsely reporting the sale of more than 100,000 homes to boost company revenues. Without denying or admitting the allegations, the company reached a settlement with the SEC on March 5. In written comments to the Daily Journal, Marcus, a former SEC enforcement attorney, explained that although the consequences of accounting fraud are generally severe, they may have been mitigated in this case due to the fact that Homex’s “management cooperated with the investigation and appear to have negotiated some leniency for the entity with the SEC. While they are barred from offering securities, the SEC did not sanction them with a penalty.”

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ILN Today Post

Argentina and Mexico enter into a Double Taxation Treaty (DTT)

Argentina and Mexico have entered into a Double Taxation Treaty (DTT). Entry into force is yet pending. We estimate that the provisions of the agreement shall have effect as from fiscal year beginning on January 1st, 2018.

Some relevant provisions applicable to intercompany transactions are as follows:

1) Interests: Withholding tax may not exceed 12% (reduced from 35% Argentine withholding tax rate).

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ILN Today Post

Ed Patricoff cautions clients conducting business with Mexico due to increasing regulation, money laundering and narcotic trafficking investigations

In a recent Focus: Latin America article, “Mexico Grows Amid Headwinds,” international litigator Harold “Ed” Patricoff cautions clients to “be very careful who you’re doing business with” when dealing in Mexico.

Ed describes instances where assets have been blocked and subject to seizure and forfeiture actions due to doing business with individuals who were being investigated. He also cautioned Mexican and U.S. financial institutions, as they are facing more money-laundering and narcotics trafficking investigations.

In light of the drug war and high regulatory environment in the country, said Ed, conducting the necessary due diligence is important.

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