One of the major challenges that the Mexican Tax Administration Service (SAT, in Spanish) faces in order to raise resources is improving the audit of major taxpayers; and this challenge is ambitious. Last year, the agency managed to raise about 24 billion MXN by audit, more than double than what was collected in previous years, when about 9 billion MXN were entered into the public treasury; the latter, despite the fact that SAT has been conducting fewer audits.

“The amount of audits has been reduced, yet they have become more punctual, focused, efficient and less invasive. We seek to have less interference with major taxpayers, but without reducing the risk perception. We want the taxpayer to know that we are monitoring him or her so that they have a risk perception of what they are doing”, shared the General Administrator of Major Taxpayers of the SAT, Oscar Molina Chie, within the framework of the XXIII Binational Mexico-USA Accountants Convention.

According to the official, the risk perception has also increased with the exchange of banking and financial information between the US Internal Revenue Service (IRS) and the SAT, derived from the Foreign Account Tax Compliance Act (FATCA), as well as to the international control mechanisms issued by the Organization for Economic Co-operation and Development (OECD) regarding transfer pricing.

“Major Taxpayers are being reviewed in real time”

Based on the electronic accounting, the General Administrator of Major Taxpayers of the SAT, Oscar Molina Chie, said that the SAT is migrating to a “real time” review of mayor taxpayers.

He explained that.... Continue reading article here

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