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Tax fraud to become type of organized crime

On 15 October 2019, the Mexican Congress passed legislation that contains a new strategy to combat tax fraud and improve revenue collection by effectively equating certain activities with organized crime, which could be subject to penalties (i.e., imprisonment and the seizure/auction of a taxpayer’s assets); the new rules will become effective on 1 January 2020. These measures, combined with a proposed general anti-avoidance rule (GAAR) and mandatory reporting of tax planning arrangements, would give Mexico’s tax authorities (SAT) unprecedented powers to challenge taxpayers’ arrangements, with potentially harsh consequences (despite recent changes made by the Chamber of Deputies).

Source: Deloitte

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