Section 12 of Act 15,336 (Electric Power Act) issued by the National Congress set that works and facilities of electricity generation, transformation and transmission under national jurisdiction and the electricity generated or transmitted therein shall not be subject to taxes and contributions, or to local laws restricting or hindering its free production and circulation.
The government of the City of Buenos Aires, considering that such tax exemption was not applicable, started a compulsory collection proceeding against Integración Eléctrica Sur Argentina S.A. claiming the payment of a Turnover Tax debt (GCBA C/ Integración Eléctrica Sur Argentina S.A. S/ ej. fisc. – ing. brutos convenio multilateral s/ recurso de inconstitucionalidad concedido”)..
The National Attorney General considered that the Federal Justice, and not the local justice, is competent to determine if a company is included under a tax exemption set by a federal act, such as Act 15,336. Thus, the matter should be solved by the Federal Justice.