Lack of Clarity to Control Operations is Noticed
Tax attorneys Mario Barrera and Catalina Mandujano were quoted in the article published by Mural that discusses Mexico's 2022 tax reform. The modifications made by the Tax Administration Service (SAT) of the country establish that financial operations that generate interest at a cost and have no business motives must comply with dividends for tax purposes. Their comments were taken from their participation in the 4th National Reforms Congress 2022.
During the congress, both lawyers shared their analyses on the changes to the tax law and explained what is expected for 2022.
Ms. Mandujano said this reform does not establish elements that determine when there is a valid business reason or not.
"[The tax authority] should present guidelines, we do not know what type of operations it is going to review, whether those of the present, past, future, under what parameters the business reason will be reviewed, we do not even know how the validity of the business reason," she said.
However, Mr. Barrera believes that once the tax authority carries our its first analysis, the determinants will be known.
"But the authority can arrive, see it in retrospect and say 'listen to your business reason', 'look, I had a market and financial study' and (he answers me) 'but none of that materialized and your business reasons weren't valid,'" he said.