Utilizing Tax Incentives for Infrastructure Ventures in Latin America: A Case Study for Argentina, Brazil, Colombia, and Mexico

This article is the result of a panel discussion between representatives from Argentina, Brazil, Colombia, and Mexico, at the New York State Bar Association (NYSBA)'s International Section 2011 Seasonal Meeting. The panel was given a case study and asked to analyse the general tax issues arising from a highway infrastructure project entered into by a fictitious US company ('Highways, Inc.') in one of the involved Latin American jurisdictions (Argentina, Brazil, Colombia, or Mexico). Under the hypothesis, Highways, Inc. was to choose the appropriate investment vehicle (special purpose vehicle (SPV), corporate structure, and capital structure. The SPV's tax obligations and tax incentives in the investment country were also analysed by the panel. The objective was to come up with potential barriers and incentives to invest in the four envisaged investment jurisdictions.