By: Eduardo Gallastegui and Abelardo Acosta
In an effort to incent non-compliant taxpayers to meet their reporting obligations under the Federal Law for the Prevention and Identification of Operations with Illegal Resources (“LFPIORPI”), the Federal Revenue Law (“LIF”) for 2019 provides that the Mexican Tax Authorities (“Hacienda”) will publish rules for a self-correction program, with a view to promoting the Mexican anti-money laundering (“AML”) provisions. The period covered by the self-correction program will be for activities carried out from July 2013 through December 2018 and includes the waiver of fines and penalties.
This is relevant from a tax perspective, as, under the LFPIOPRI, monthly notices must be filed with Hacienda that detail “vulnerable” activities carried out by the taxpayer. Vulnerable activities are those relating to gambling and betting, sales of tickets for prizes and raffles, credit cards, pre-paid cards, services cards, travelers checks, loans, construction and building, purchases and leases of real estate, cars, jewelry, art, armored vehicles, and others. Non-compliance with the reporting obligations to Hacienda under the LFPIOPRI will carry fines and penalties that range from US$42,000 to US$275,000; or from 10 percent to 100 percent of the value of the transaction.
Taking this into account, on April 16, 2019 Hacienda published the rules through which the self-correction program will be available. Read more about these rules here.