Particle.news

Download on the App Store

Sarandí Withdraws Supreme Court Appeal and Enters Argentina’s Tax Regularization Plan

Under Law 27.743, the company will begin negotiating deferred payments to address its roughly $2 billion tobacco tax liability.

Overview

  • Sarandí formally notified the Supreme Court that it is withdrawing its challenge to the 70% internal tobacco tax after the high court revoked its remaining injunctions.
  • The company invoked Law 27.743’s tax regularization framework to seek a structured payment plan for outstanding duties accumulated since 2009.
  • Industry rival ARCA has documented a claim nearing US$2 billion for years of unpaid levies, which now awaits further documentation and lower court review.
  • Since 2018, repeated judicial maneuvers allowed Sarandí to avoid the levy, undercut competitors and boost its market share from 5% to over 30%.
  • With jurisdiction returned to trial courts, negotiations will focus on deferral terms and the ultimate settlement of Sarandí’s fiscal obligations.