Ten-year period for the statute of limitations applicable to local tax refund claims

On October 6, 2009, the Supreme Court of Justice ruled in the case “Bruno, Juan Carlos c/ Provincia de Buenos Aires s/ acción de inconstitucionalidad” on the application of a five or ten year limit to claim the refund of taxes, in favor of the Provinces and Municipalities.

The Province of Buenos Aires tried to dismiss Mr. Bruno’s claim based on the expiration of the five-year period of the statute of limitations, set forth in the local law.

The Supreme Court of Justice applied the Filcrosa holding stating that article 75 section 12 of the Argentine Constitution prevents Provinces and Municipalities from legislating on the statute of limitations.

As a result, in this case, the Supreme Court deems the ten-year period, provided by article 4023 of the Civil Code for “personal actions”, to be applicable for the statute of limitations disallowing the Province to reduce it to five years.