Recently, Mexican tax authorities have not only been increasing the number of tax audits conducted to review the due compliance with tax obligations, but they have also been more aggressive using new tools to secure higher collection in taxes.
The Mexican President mentioned that they have a list of taxpayers that owe the Mexican Government more than MXN 50,000 Million (USD 2,235,960,000). This list does not include taxpayers currently facing a tax audit. Because of this, the Mexican IRS (SAT) has begun many tax audits or is directly requesting taxpayers to file amended tax returns due to allegedly illegal deductions.
It has recently become more common that taxpayers receive an ‘invitation letter’ by which tax authorities begin an express informal revision. It should be a top priority for companies to be prepared for a tax audit. It does not matter if the Mexican company of the group has been recently incorporated or it is now a large taxpayer, the key question is “how the company can be prepared for a tax audit?”
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