Questions & Answers
Alfredo is partner of the corporate tax, tax compliance, anticorruption and AML practice of Kaye Trueba y Castilleja Abogados. He has spent over 18 years advising and implementing tax strategies for the application of international treaties to avoid double taxation, on behalf of companies from several industries. He holds a doctorate in EU business law from the Complutense University of Madrid, and master’s degrees in law and taxation. He is currently pursuing a degree in public accounting.
Describe your career to date.
Due to globalisation and the emergence of multinational companies, as well as requirements for entrepreneurs to increase their resources to accomplish their objectives, the existence of corporate tax lawyers is now more essential than ever to correctly determine the specific taxes that the taxpayers will have to pay, and to avoid double taxation.
In this sense, I have dedicated over 18 years to better understanding and learning the ins and outs of the practice, to be able to advise our clients according to their best interests.
What motivated you to specialise in corporate tax law?
The opportunity to advise public and private companies on paying their local and federal taxes, applying international treaties, and implementing tax strategies and corporate structures to allow them to pay their corresponding taxes – no more, no less.
Also, I was (and remain) motivated by the idea that companies in Mexico are one of the most important elements of our economy, as they create jobs; provide goods and services that bring value to the Mexican market; and of course, contribute to the development of our country by paying taxes. In view of how companies play such an important role, I consider it elemental for them to operate, in accordance with the law, in the most efficient way possible.
What did you find most challenging about entering the field of corporate tax?
Tailoring my advice regarding the implementation and application of international, federal and local tax legislation, and treaties to avoid double taxation, international and national court tax resolutions, doctrine, tax practice experience and interpretations of the tax authority’s policies, to a specific case or situation.
What types of matter are clients most commonly seeking your advice on?
They are mostly interested in cross-border operations between Mexico and other countries (application of treaties for the avoidance of double taxation, and the prevention of fiscal evasion); operations between related or third parties, regarding the implementation of structures to increase their tax efficency and compliance with corporate obligations; and assistance with, or legal defence against, tax credits.
How has a greater focus from authorities on tax audits impacted how clients operate?
The authorities have mostly been focusing on overseas payments to related parties, as this can be the payment of interest, royalties, dividends, business profits or payments to tax havens, which have seriously impacted companies. The authorities are also focused on reviewing the materiality of operations that are subject to taxpayers’ deductions.
How do you see your advice on M&A transactions changing after covid-19?
I think the covid-19 pandemic will force all of us to evolve in all various aspects. In my case, my recommendation will be for clients to implement rigorous due diligence programmes, establishing means of verifying compliance with obligations concerning health and safety, hygiene, mental health, infection risks, the payment of fines and social security contributions. In addition, I consider that there will be industries that, due to the temporary suspension of operations, did not have a revenue stream (or had very minor one), and could be placed in a situation of insolvency and non-compliance with their tax obligations.
What makes Kaye Trueba y Castilleja Abogados stand out from its competitors?
We are a boutique firm that stands out from the rest, because before advise or provide any service to our clients, we first dedicate our time and effort to knowing every single detail of their daily operations and structure. This allows us to respond 100 per cent to the clients’ requirements and potential solutions, in order to help them in the best way possible. Our priority is to offer an excellence advisory service in an immediate and efficient way. Considering this, we are very selective when choosing a client.
In which direction would you like to steer your practice over the next five years?
At Kaye Trueba y Castilleja Abogados, we are seeking to grow our practice as much as possible, and to combine our practice with the use of technological platforms and digital media. We plan to position ourselves as the go-to national and international tax-specialist firm.