Mexico’s Supreme Court Upholds Key Tax Rules on Mergers and VAT Refunds

Mexico’s Supreme Court upheld the authority of the Tax Administration Service (SAT) to enforce requirements for canceling the Federal Taxpayer Registry (RFC) in corporate mergers, denying cancellation if parties are linked to simulated transactions. The court also ruled that VAT refund denials become final if not contested, preventing resubmission of corrected applications. The SCJN confirmed the constitutionality of RFC cancellation requirements, emphasizing their role in preventing tax evasion and ensuring compliance. Companies must meet all procedural requirements and provide robust evidence to avoid delays.

Source: hklaw.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---