Another Mexican firm has welcomed back a former partner in a merger. Luis del Valle has returned to Jáuregui y Navarrete (JNA) in Mexico City, bringing with him Del Valle Torres, the tax boutique he started in 2008 when he left JNA. The resulting entity is Jáuregui Navarrete y Del Valle.
Del Valle will take over the role of managing partner from name partner Gabriel Navarrete Alcaraz, who has held the role for 25 years. Though the merger took legal effect in July, the practical matter of combining clients and offices is still underway and the full integration of the firms is not expected until October. The new firm will have an additional ten lawyers including three partners.
The anticipation of a tax overhaul in Mexico had lent urgency to what was an ongoing search by JNA for a tax partner.
“We had been looking for a tax boutique to unite with for years,” firm chairman Miguel Jáuregui Rojas told IFLR1000. “We feel fortunate to have finally achieved an agreement with Luis.”
Jáuregui further explained, “We are expecting a substantial tax reform and that will provide for the need to be very active in clients’ taxation matters, both domestically and internationally; and if you consider that in Mexico we have had a telecoms reform, an educational reform and now will have an energy reform, each of those reforms will have its own taxation issues, both domestic and international.”
Under the government of President Enrique Peña Nieto, elected in December 2012, the country has seen a range of constitutional changes. In anticipation of a rewriting of a tax code which has until now, according to Jáuregui, been “ad hoc,” the firm saw a need to bring tax expertise aboard.
He explained, “Mexico has a track record of dealing with taxation through regulations, opinions, circulars, executive orders. Thus, Mexico needs an integral tax reform.”
Changes to the tax code are expected to broaden the taxpayer base and clarify regulations. According to this view, simplicity and clarity will help maintain the amount of foreign investment that has poured into Mexico over the last few years and spurred economic growth.
Jáuregui gave the following analysis: “I believe tax reform will bring an increase to the taxpayer base; there are many aspects of current tax law and regulation that provide for exemptions and zero tax rates that hopefully will now be done away with; there also is a need to deal better with a more competitive taxation of corporations and individuals and achieve a complementary consumer-driven taxation process, i.e., by means of Value Added Tax; the taxation system of Mexico must change.”