TSX-listed First Majestic Silver said on Wednesday that it had served notice to Mexico of its intention to initiate arbitration proceedings under the North American Free Trade Agreement over a tax dispute.
The company, which owns three silver mines in Mexico, said that it had unsuccessfully sought to resolve the taxation issue through local bodies.
First Majestic alleges that the Mexican tax authority, the Servicio de Administracion Tributaria (SAT), has by its various actions exhibited a “total disregard for the applicable provisions of three separate double taxation treaties that it has entered into with Canada, Barbados and Luxembourg”.