On 1 January 2020, new regulations came into force as a consequence of several amendments published in the Mexican Official Gazette on 9 December 2019.

 

Among these regulations, the legislative branch introduced new powers to the Federal Tax Code under which the tax authorities will be entitled to restrict, and eventually cancel, the tax certificates used by the taxpayers to issue deductible tax receipts.

 

The objective of this legislative decision is to broaden the legal spectrum on which the tax authorities will be able to obstruct the billing cycle of companies, as this has proven effective in compelling taxpayers to regularise their tax situation.

 

However, some of the new powers introduced into tax law could be very dangerous for companies and may become an instrument for some inexcusable abuses from the tax authorities