Federal Tax Credit and Administrative Acts in Mexico

Posted on Dec 2, 2024 in Law & Jurisprudence

Federal Tax Credit and Administrative Acts

Place and Date of Issuance

Acts will be notified at the Angelis office and may be consulted.

Resources

Decisions will be made on all proposed items, matching background calls and completing every order.

LFPA Exceptions

  • Contributions (taxes, transfers of social security contributions for improvements and rights)
  • Federal MP
  • Foreign Trade
  • Unfair Competition
  • Actions of Public Servants

CFF Requirements (Art. 38)

  • Written or digital document
  • Issuing authority
  • Place and date of issuance
  • Founded, reasoned resolution expressing the object or purpose
  • Competent official signature and name

Extinguishing the AJA

Normal

Fulfills its purpose or holds a voluntary basis.

Abnormal

  1. Termination: Resolution of obligations through a judicial process.
  2. Prescription: Acquisition and loss of a right after 5 years (Art. 146 CFF). Interrupted by collection management or express/implied recognition. Fiscal domicile change without notice or incorrect.
  3. Expiry: The authority ceases to perform the required acts to preserve the right (67 CFF). Tax credit is payable within 45 days; determining loss expires in 5 years.
  4. Waiver: Advantaged acts in the interest of the governed.
  5. Lack of Compliance/Resolutory Clause of Condition Precedent: Suspensive condition depends on something for the emergence of an obligation. Resolutory condition is true and certain.
  6. Revocation: Administrative act is presumed legal (68 CFF) when it meets public interest or the conditions of its grant. Must be legal and may only be revoked when it benefits the governed.

Notices

Personal: Requirements, subpoenas, requests for reports or documents, and actionable administrative acts. Served at the fiscal domicile (business location) from 7:30 to 18:00.

Powers of the Authority

Correcting errors in statements and applications, practicing appraisals, obtaining information from officials, making complaints and grievances, soliciting acts and documents, reviewing accounts, opinions, tax receipts, and goods through requirements and domicile visits.

Tax Credit

Amount entitled to the state or decentralized agencies through contributions or reprimands (4 CFF).

Tax Interest

Interest the state has for a tax credit.

Tax credit: 45 days / Labor-management: 15 days

Extinguishing the AJA

  1. Payment/Repayment: Delivery of the agreement, single display, within designated national currency. Agreements with the Ministry of Finance possible for deferred payment (within 12 months with surcharges) or timing (20% of credit paid, the rest within 36 months with refills and upgrades).
  2. Condonation (146-B)
  3. Compensation (23)
  4. Prescription (146)
  5. Lapse (67)
  6. Cancellation (146-A)
  7. Gift in Payment: Debtor, with creditor’s consent, gives something other than what’s due, fulfilling payment’s legal purpose. Adjudication procedure where Treasury allocates to no bidders, lack of bids, or bids equal to or less than 60% of the allotment value.
  8. Revocation
  9. Tax Renewal
  10. Concordat Agreement
  11. Notice of Low, Closing, or Closing a Business/Commercial Establishment
  12. Confusion of Rights: Creditor and debtor are the same entity.

Cancellation (Punish Accounts)

Unaffordable given the debtor’s insolvency. Refers only to credit; tax obligation remains until prescribed. Authority requests cancellation charge, considered unaffordable if justified credit is less than or equal to 200 UDIS and recovery is 75% greater than total.

Remission (From Fines)

Discretionary, considers recidivism, use of nonexistent documents, operations on behalf of third parties, differing content, contagious destruction, or omission of 2 or more social contribution books. Fines within 45 days reduced 20-25%; top 15% halved (74, 75, 77, 78 CFF). In commercial contests: (1) 2+ creditors, (2) credits 30+ days overdue, (3) debt +35% of total, (4) no assets to cover 80% of debts.

Commercial Contest Stages

  1. Plea Request: Merchant and demand (MP or creditors) before the Judge of Dtto. or IFECOM. Designates visitor (statement), reconciled (priority credit, conciliator), trustee (bankruptcy), and auditor (appointed by creditors).
  2. Declaration of Competition: Visitor verifies non-compliance and issues resolution based on inspection report.
  3. Recognition and Priority of Debts: DOF publishes resolution and notifies identified creditors (part of the RPPyC).
  4. Conciliation or Agreement: Judge-appointed conciliator checks credits and establishes preliminary list. Judge’s interlocutory ruling in DOF gives final list.
  5. Bankruptcy: (+ 400,000 UDIS)

Priority of Debts

  • Preferential creditors (burial and medical expenses)
  • With collateral (mortgages and collateral guarantees)
  • Special privilege (before tax and labor)
  • Common (surplus)

After mortgage, food, wages, treasury (preferential tax before privileges).

Compensation

Saldo extinguishes the obligation. Remaining balance calls for return.

PAE (Debt Settlement)

Required to be completed later.

Assumptions

  • Objects hinder purchase; cannot be notified or home is unknown.
  • Risk of squandering, concealing, or disposing of assets.
  • Refusal to provide accounting.
  • Uncredited property and RFC in local, fixed, and semi-fixed locations.
  • Drinks without tags, altered, modified, or without lawful possession.

Default Notice/Embargo

Expires in 3 years (if precautionary, founded fear of evading responsibility, 10-day guarantee, but it is final). Finish (30 days later, credits execute precautionary garnishment, not proposing buyer, strong decision confirming).

Succession

Before the municipal authority.

Seizing Goods

  • Furniture (depositary) (appraisal 10)
  • Property (RPP) (appraisal 20)
  • Negotiation (controller) (expert appraisal, but agreed upon within 30 days)

If appraisal difference exceeds 10%, third-party authority opinion is sought.

Property Seizure Order

  1. Money, metals, bank accounts
  2. Stocks, bonds, expired coupons, credits of immediate and easy recovery by EDF, MUN, EDO entities, credit institutions, known companies
  3. Furniture
  4. Real Estate

Authority Execution Instructions

  1. If not enough goods or order not followed
  2. Rightly pointed out division, with tax, perishable

Stances

Cash offer, 2/3 vote, 10% satisfaction for bidders, 8 days for bids, furniture amount covered in 3 days, 10 days for others.

Suspension of PAE

  1. Ensuring: Cash deposit, pledge or mortgage (75% free of charge by RPP, inscribed with tax credit data or management contracts with brokerage firms having recourse to investment securities), bail (in charge of executing authority, acceptance by notary/moral entity (10% less than capital)/physical person (10% less than income or declared capital affecting business)), third-party solidary obligation (at taxpayer’s request with documentation, being depositories, enrolling in RPP, covering execution), titles (CETES with endorsement in warranty). Guarantee (cataloged, meets formality) covers amount and 12-month update.
  2. Suspension of revocation
  3. Declared bankrupt

Voiding the Warranty

Replacement, credit payment, or cancellation.

Legal Remedies

Revocation

Authority acts dealing with contributions and accessories. Restudy of the act of authority. Appropriate against: (1) tax credit determinations, (2) denial of drops, (3) customs procedures, (4) SAP procedural violations, (5) opposed authority appraisals, (6) third parties, (7) bad notices. Office may be where it benefits the governed or upon application to verify competence, foundation, reasoning, and public interest. Suspended for 45 days, no death or disability. Substantiation: 3 months (negative fictitious). Prerequisites: name, address, business name, RFC, directed authority, non-home reception, signatures, attachments (10 days), contested issues, torts, evidence (expert opinion), and disputed facts (5 days).

Senses of Resource

  1. Scrapped/Improper
  2. Dismissal
  3. Confirmation
  4. Procedure replacement
  5. Outright revocation (skills)
  6. Resolution replacing the administrative act

Inappropriateness

  1. Lack of legal basis
  2. Sentencing decisions in compliance
  3. Challenge in TFJFyA
  4. Spoiled matters
  5. Related matters
  6. Unextended or unexpressed grievances
  7. Revocation by authority
  8. Double taxation treaty
  9. Certain taxes and other country accessories

Dismissal

  1. Withdrawal
  2. Occurrence of inadmissibility grounds
  3. No contested matter
  4. Cessation of effects

Suspension

5 months to apply, tax amount, and 12-month update.

Taxpayer Defense

  1. Administrative acts
  2. Authority actions, decrees, general regulations

SHCP handles federation tax interest lawsuits.

Features to Nullify the Act

  1. Incompetence
  2. Lack of formal requirements, motivation, and justification
  3. Vices of the particular procedure affecting the resolution
  4. Mispricing of evidence
  5. Discretionary powers do not correspond
  6. Procedural violations causing helplessness
  7. Unfair arbitration procedure competence

Permissible

  1. Legal interest
  2. Lack of competence
  3. Sentence by the same court
  4. Consent
  5. Pending appeal in TFJFyA
  6. Outstanding defense medium (final)
  7. Related depleted route
  8. Challenged in judicial process
  9. Against regulatory matters
  10. Without contesting concepts
  11. No resolution
  12. Double taxation

Formalities

45 days’ notice to act, 5 years to challenge harmfulness trial.

Amparo

  • Defense demand submitted to the transfer CC, responsible authority, parties, and MP.
  • Calls on the parties.
  • Records notification issuance date, application submission date, and non-working days.
  • Responsible authority transmits original file, justified report, and securities demand to the TCC.
  • Post-hearing, record goes to a magistrate for project; sentence imposed in 3 months.
  • TCC has 5 days for resolution thickening.
  • Available within the meaning of the resolution.

Demand Formalities for Amparo

  1. Complainant’s name and address
  2. Injured third party’s name and address
  3. Responsible authority/authorities
  4. Contested matter
  5. Notification of contested decision
  6. Violated provisions
  7. Incorrectly applied law