Chihuahua, Chih., December 26th, 2019.
Dear clients and friends,
The inspection faculties of the tax authorities have been increased by means of recent law amendments and regulations, new criteria, such as the amendment to the Federal Law Against Organized Crime, which foresees as organized crime, the purchase or sale of tax receipts that support simulated transactions, as well as, having commercial relationships with Companies that Invoices Simulated Transactions (EFOS) and/or Companies that Deduct Simulated Operations (EDOS), the herein, in addition to the possibility of being included on the list of taxpayers that meet the hypothesis of article 69-B of the Federal Tax Code (CFF), issued by the corresponding tax authority; or by means of the precedent published on December 6th, 2019, that requires that private documents submitted to the tax authorities, in exercise of their inspection faculties, have an “authenticated date”, said date is established once they are (i) registered in the Public Registry, (ii) when they are duly notarized, or (iii) after the death of any of their signatories. We strongly suggest to our clients to request legal advice regarding the correct way to document your commercial transactions, in order to avoid falling into these scenarios.
Thus, as part of the services provided by our corporate practice area, we look forward to provide counsel and protect your commercial transactions in order to avoid, that the fiscal authorities may consider your transactions herein referred as non-existent; or in other words, that the authority qualifies them as simulated transactions.
The foregoing may be prevented through the correct documentation of operations, duly notarized (if requested), under the principles of substantiation, reliability, veracity and verifiability. This documentation must be drafted after an in-depth analysis that unfolds in the correct way to protect your operations; in order that, the authority can conclude your commercial transactions are real. The aforementioned, by means of: the drafting of agreements, the correct issuance of invoices, the development of exhibits that supporting said operations or services and/or related documentation (physical evidence of the goods or services), if applicable, among others.
Thus, we recommend reviewing that the commercial transactions that your Company has carried out, has been with contractors and/or clients, which are in compliance and up to date with their tax obligations; as well as verifying that the operations are duly documented, and if not, contact us, so we can assess your transactions in order to properly determine the correct means to document and support your operations.
If your Company requires an analysis of the documents that support its commercial transactions, or requires support in the drafting of the corresponding agreements, please do not hesitate to contact us; since the aforementioned may avoid the determination of a tax credits by the authorities, or if the case may be, that the authorities may consider that your commercial transactions are simulated.
