US, Global Corporate Giants Not Amused As Mexico Finally Forces Them to Pay the Taxes They Owe

American Bar Association, Mexican business lobby, ambassadors from the US, Canada, etc. in uproar over holding executives accountable and threatening them with criminal probes. 70 Mexican officials also investigated.

By Nick Corbishley and cross-posted from WOLF STREET.

The American Bar Association (ABA) this week lambasted the Mexican government for using heavy handed tactics, including criminal probes into tax fraud, to motivate corporate tax dodgers to finally settle their tax bills. The complaint echoes a similar broadside from the International Bar Association last month and reflects growing frustration among companies about the government’s use of more stringent audits, tighter surveillance methods, and the threat of tough legal action to crack down on corporate tax dodgers and tax frauds.

The Government says it has launched criminal proceedings against 43 companies that owe 55 billion pesos ($2.6 billion) to the treasury in unpaid taxes dating back to 2010. Most other companies that have been subject to audit in recent months have agreed to settle their tax debts.

Thanks largely to its zero tolerance approach toward corporate tax dodging,the government so far this year through August has already collected over 60% more in taxes from large corporate taxpayers — 155 billion pesos ($7 billion) — than in the entire year 2019, Raquel Buenrostro, who heads Mexico’s SAT tax authority, told Reuters.

But authorities had reviewed only 627 large companies so far, she said, and over 11,000 companies, each with annual income above 1.52 billion pesos ($72 million), have not yet been audited, and more work needs to be done…

Continue reading the article

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s