Tax Reforms and Increased Audits: A Cause for Concern
Business leaders and executives are expressing concern over two significant developments: the reform of the Amparo Law in tax matters and the announcement by the SAT (Mexico’s tax administration) that it will conduct 16,200 audits in 2026. While the government of President Claudia Sheinbaum promises efficient tax collection, many perceive a more politically-driven approach focused on collecting first and allowing defense later.
The New Amparo Law: A Shift in Power
The revised Amparo Law restricts suspensions of claimed acts—the primary shield for taxpayers against fiscal authority abuses—under the argument of protecting “social interest” and “public order.” In practice, those subject to audits or facing tax liabilities can no longer halt SAT actions through amparo. They must pay or provide security before litigating, thereby increasing the authority’s power and reducing defense margins.
SAT’s Audit Plan: A Symbolic Intimidation
The SAT plans to audit 1,200 large entities, 12,000 small and medium enterprises (SMEs), and 3,000 in foreign trade. Officially, this accounts for 0.02% of the taxpayer registry (81 to 86 million accounts), but if inactive or duplicate accounts are removed, the real figure is around 60 million active taxpayers. Thus, the reviews represent only 0.03% of the total—a symbolic number aimed at intimidating rather than mass fiscalization.
International Comparison: Mexico’s Low Audit Rate
Compared internationally, Mexico audits very little. The US IRS reviews 0.3 to 0.5% of declarations; Canada, around 1%; Germany, 1.7%; the UK, 0.8%; France, 2.5%; and Italy, 0.6%. Even Brazil and Chile surpass 0.8 percent. Mexico ranks at the low end, with fewer audits but weaker judicial counterbalances and greater discretionary power following the reform.
Who Should Be Concerned?
- Large and medium-sized taxpayers with complex operations: They can no longer halt multi-million dollar credits without paying. Large entities face increased pressure to settle quickly, while SMEs lack the legal structure or resources for prolonged litigation.
- Importers: They face immediate suspension risks if discrepancies in prices or volumes are detected.
- All taxpayers: It is crucial to document the economic reality of their operations, maintain contracts, CFDIs (tax documents), bank flows, and retainions, and conduct internal audits before receiving audit requests.
The Risks Extend Beyond Economics
The risks extend beyond economic concerns. If audits are used as pressure tactics, the lack of effective amparo opens the door to corruption. In a country where taxpayers cannot suspend arbitrary acts, negotiation becomes more appealing than defense. This erodes trust and undermines the legitimacy of the tax system.
Predicted Consequences
The consequences are predictable: less private investment, increased business caution, and reduced formal job creation. Mexico needs confidence and capital to sustain nearshoring, and if the SAT confuses fiscalization with intimidation, it will scare away the investment it aims to attract.
President Sheinbaum’s Standing
Currently, President Claudia Sheinbaum enjoys an approval rating above 70%. However, decisions like these will test her image as a technically competent and fair leader. If the audits result in abuses or corruption, her efficiency discourse may become synonymous with authoritarianism.
Facebook: Eduardo J Ruiz-Healy
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