New Mexican tax laws to help prevent tax evasion

Tuesday, 22 October 2013
Mexico's Chamber of Deputies has approved a new Federation Tax Code that will introduce a series of legal changes with the primary goal of simplifying the process by which taxpayers declare their taxes, thereby enabling the authorities to prosecute fraudsters more efficiently.

According to the newspaper Milenio, the amount owed by each person and the tax breaks for which they are eligible depends on the financial situation of a given individual.

Leticia Armenta, director of the Economic Analysis center at the Tecnológico de Monterrey University, says there are two main factors that determine the amount each taxpayer is obliged to pay. The first of these is the rate assigned to each tax, while the other depends on the tax code, economic activities and sector of employment to which that individual belongs. Only by referencing both of these can the total amount owed in taxes by any given person be derived.

The new Federation Tax Code, however, also takes into account a number of other key factors, such as a change to tax secrecy rules that allows the authorities to publish on their website the names and other details of any person suspected of not fulfilling their fiscal obligations.

Another important measure against fraudsters is the right given to the authorities to annul financial certificates or digital signatures in the event that they are detrimental to the interests of the fiscal treasury.

In order to achieve this, the new Federation Tax Code will make use of certain technological advancements, such as mailbox tax, a tool that allows direct and immediate communication between citizens and the fiscal authorities. Although the exact way in which this particular application will work has yet to be made public, it is thought that the use of mailbox tax will be free of charge to all taxpayers.

María Fonseca Paredes, director of the Economics and Business Investigation Centre at Tecnológico de Monterrey, explained that mailbox tax will make it much simpler for taxpayers to make declarations – so much so that they won't even require the services of an accountant.

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