IMPORTANT: First deadline to fill the amparo lawsuits is February 13, 2015
Starting in January 2015, Mexican taxpayers (including Mexican subsidiaries) are required to submit their tax accounting information electronically to the Mexican Treasury on a monthly basis. The first group of taxpayers that have to comply with this new requirement are Mexican companies that are not listed on a stock exchange and reported in 2013 annual revenues greater than 4 million pesos. These taxpayers must submit their tax accounting files electronically to the Mexican Treasury no later than March 3, 2015.
In addition to the administrative burden created by this new regulation, the Mexican Treasury will have the authority to control and have continuous access to a taxpayers’ tax accounting records, even without having previously initiated an audit against the taxpayer. Even if they wish to comply with this regulation, it is anticipated that many taxpayers may have difficulty adjusting their tax accounting records sufficiently to meet the requirements (which include requiring that tax accounting records be linked to electronic invoices). Therefore, this scenario could create legal uncertainty because these tax accounting requirements (or their modification) are left to the discretion of the Mexican Treasury.
In order to challenge this new requirement, a taxpayer may file a constitutional challenge lawsuit (amparo) against the Mexican Treasury and request an order suspending the obligation to submit its electronic tax accounting records on a monthly basis. The deadline to file an amparo lawsuit is February 12, 2015 or within fifteen days following the first time that the taxpayer electronically submits the tax accounting records to the Mexican Treasury.
Taxpayers that file an amparo lawsuit may be able to obtain an order staying the obligation to electronically file such information with the Mexican Treasury due to the fact that the Mexican Supreme Court of Justice has established a judicial precedent which requires that every amparo court grant a stay order for this type of matter.
Our recommendation
Evaluate filing an Amparo (Lawsuit against the Tax Authority) . Certainly the adoption of new measures will take companies time (may months) to adjust their internal processes, so it is very important that each company evaluate the advisability of filing an Amparo, enabling it to “the suspension of the obligation to upload accounting starting in October 2014 “even if the obligation of the records remain”. We believe that there are strong legal elements to challenge the injunction in Article 28 of the CFF, together with the general rules issued by the Tax Administration Service (SAT), the same must be lodged within 30 days of entry into force of these provisions, which may be asserted violations of rights protected by the Mexican Constitution.
Symbiosis Effect in Canada have developed a comprehensive service that covers this recommendation with the participation of a multidisciplinary team of lawyers, accountants and experts in Information Technology to provide your company the support and support you require.
For more information and options please contact us.
This document contains general and public information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute assurance, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. Symbiosis Effect, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person.
