Mexico City, September 8, 2021 – Grupo Herdez, S.A.B. de C.V. (“Grupo Herdez” or the “Company”) (BMV: HERDEZ) informs:
- In the annual report of April 22, 2021, in the Audited and Consolidated Financial Statements, as well as in the most recent quarterly restatement on July 22, 2021, the company informed about tax assessments determined to Nutrisa, S.A. de C.V. for the fiscal years of 2014, 2015 and 2016 related to a unilateral change in the interpretation of the law by the tax authority with respect to the application of the 0% rate of the Value Added Tax in the sale of yogurt ice creams and popsicles.
- In this regard, the Servicio de Administración Tributaria (“SAT” “Tax Administration Service”) confirmed the tax assessments through official resolutions dated August 26 and 27, 2021, which were notified on the 27th of the same month and year. The amounts involved are $310’992,079.00 for 2014, $388’451,717.00 for 2015, and $280’450,157.00 for 2016, for a total amount of $979’893,953.00 (NINE HUNDRED SEVENTY-NINE MILLION, EIGHT HUNDRED NINETY-THREE THOUSAND, NINE HUNDRED FIFTY-THREE PESOS 00/100).
- Once we analyzed such resolutions and prior consultation with our advisors, the Company considers that the 0% rate of the Value Added Tax shall be the rate applicable to yogurt ice creams and popsicles, as they are frozen food.
- Since this is a unilateral change of interpretation and application of the law by SAT, Herdez will file a Juicio de Resolución Exclusiva de Fondo before the Tribunal Federal de Justicia Administrativa (“Federal Court of Administrative Justice”).
- This trial grants the benefit that no guaranty of such tax assessment amounts is required in accordance with applicable law.
- The Company reaffirms its commitment to the application of the Law and has properly complied with its tax obligations.