Introduction to the New Judicial System
With the new judicial system that took office in September, companies and banks are appealing less frequently than before, according to Víctor Manuel Herrera, head of the Instituto Mexicano de Ejecutivos de Finanzas (IMEF).
Key Changes in the New Judicial System
- Reduced Filing of Amparos: Companies and banks are no longer issuing amparo (legal protection) with the same frequency as before.
- Impact on Economy: This change in behavior reflects the new era of the judicial system and will have economic repercussions for businesses and financial institutions.
- New Risk Factor: This shift will need to be factored into credit pricing and operational costs for companies.
Reform to the Ley de Amparo and its Implications
Nora Morales, a member of the IMEF’s technical committee for economic studies, explained that the reform to the Ley de Amparo (Amparo Act) will affect the dispute of firm tax credits.
- Limited Fight Against Firm Tax Credits: The amendments primarily impact the inability to challenge definitively resolved tax credits against a taxpayer.
Contribuyentes (Taxpayers) Lose Right to Reply
The IMEF warned about changes to the Código Fiscal de la Federación (CFF) that stiffen penalties for operations involving false tax documents.
- New Verification Power for Tax Authorities: The CFF changes introduce a new verification power for tax authorities to detect and penalize the issuance of false or simulated transaction documents.
- Definition of False Tax Documents: The CFF now explicitly defines “false tax documents,” continuing the reform to Article 19 of the Constitution that added activities related to false tax documents to the list of offenses requiring preventive detention.
- Restrictions on Digital Seal Certificates: Authorities can now presume the nonexistence of operations when issued tax documents do not correspond to a taxpayer’s economic or material capacity, and can restrict or invalidate digital seal certificates used in such operations.
While these measures aim to close evasion loopholes and strengthen the traceability and authenticity of transaction documents, the IMEF cautions that they leave taxpayers “without the right to reply” regarding operations conducted with other taxpayers falling under the aforementioned category.
