Background and Relevance
In recent days, taxpayers in Mexico have taken to social media to express their frustration over delays and rejections of refunds for excess payments, also known as “saldo a favor.” This issue has garnered attention due to the concerns raised by tax authorities’ usual processing times and the current situation.
Understanding “Saldo a Favor”
When a taxpayer’s deductions exceed their actual tax liability, the government owes them a refund. This situation is referred to as “saldo a favor.” Taxpayers who receive this refund have two options: an automatic refund or a manual refund process through the tax authority’s digital mailbox.
Tax Authority Processing Times
According to Master Rodolfo Jerónimo Pérez, a member of the technical fiscal commission at the Mexican Public Accountants College, automatic refunds typically take between seven and ten business days. However, the law mandates that the tax authority return the money within 40 business days of the request.
If a refund request is denied, taxpayers have two options: the authority may ask the taxpayer to verify the excess payment’s legitimacy or proceed with a manual refund via the tax authority’s digital mailbox.
Master Pérez explained that these delays occur when there are discrepancies between the tax authority’s data and the information provided by the taxpayer in their declaration. In such cases, the authority must review the information to ensure the refund’s validity.
Financial Analyst’s Concerns
Mario Di Constanzo, a financial analyst and economist, recently expressed concerns on social media about the tax authority’s “discretion,” “delays,” and “lack of transparency” in processing refunds. Di Constanzo is advocating for collective action against the tax authority through the Procuraduría de la Defensa del Contribuyente (Prodecon).
Tax Authority’s Response
The tax authority has dismissed these claims as false, stating that by April 15, they had processed 1.3 million refunds for taxpayers with excess payments totaling 10,323 million pesos.
Key Questions and Answers
- What is “saldo a favor”? It refers to the situation where taxpayers receive a refund for overpaid taxes due to excess deductions in previous fiscal years.
- What are the typical processing times for refunds? Automatic refunds usually take between seven and ten business days. However, the law requires the tax authority to return the money within 40 business days of the request.
- What happens if a refund request is denied? The tax authority may ask the taxpayer to verify the excess payment’s legitimacy or proceed with a manual refund via the tax authority’s digital mailbox.
- Why are taxpayers complaining about delays? Taxpayers are concerned about the tax authority’s discretion, delays, and lack of transparency in processing refunds.
- What is the tax authority’s response? The tax authority denies claims of delays and states that they have processed a significant number of refunds by the given deadline.
