TAX. First Reference Parameters for IT taxpayers for measuring the tax risks of several economic activities June 14, 2021
The subsection j) of the section I of article 33 of the Federal Tax Code in force as of 2021 (FTC), states that for better compliance with the powers of the tax authorities, the Tax Administration Service (TAS) will publish periodically and in general to the taxpayers of the Income Tax Law (IT), the reference parameters with respect to the utility, the deductible concepts or the effective IT rates of other legal entities or legal figures that obtain income, compensation or profit margins due to carry out their activities based on the economic sector or industry to which they belong, in order to measure the tax risks involved.
On June 13, 2021, the TAS released through its website the first reference parameters with respect to the effective IT rates for measurement of tax risks corresponding to 40 different economic activities that they are mainly part of the economic sectors of: mining, manufacturing industries, wholesale trade, retail trade, and financial and insurance services (including the automotive and pharmaceutical industries) for tax years 2016 to 2019, which will be applicable to taxpayers considered “Large Taxpayers”.
The TAS indicated through the statement with which it disclosed the aforementioned reference parameters that, in order to facilitate and encourage voluntary compliance by taxpayers, they invite to consult the effective IT rate that corresponds according to the economic activity that they belong and compare it with the effective rate used in each tax year to measure their tax risks, and, if applicable, correct their tax situation by filing the corresponding supplementary annual returns and, thus, minimize the possibility to initiate to them a review aimed to corroborate the correct fulfillment of their tax obligations; that is, an tax audit.
Although the TAS indicated that to issue the first reference parameters it started from the information contained in its databases, which contain annual returns, tax reports, information on the taxpayers’ tax situation, informative returns, electronic invoices, import applications, among others, the concern is that as we previously informed in the newsletter issued on February 10th, 2021, even when subsection j) of section I of article 33 of the FTC establishes that voluntary compliance programs will not be binding, we consider that with the issuance of these first reference parameters to measure tax risks, in a certain way they imply a preparatory measures that the tax authorities will use once they initiate a tax audit in order to determine a tax liability to taxpayers.
Finally, the TAS pointed out that to date they are conducting the necessary analyzes regarding the effective IT rates of other economic activities for their subsequent disclosure, so we estimate that the remaining reference parameters will be issued as soon as possible.
We suggest that the aforementioned comparison be made between the corresponding effective rate contained in the first reference parameters and the effective rate applied and, always matchmake the documentation that forms the accounting that demonstrates the origin of the accumulated income obtained, the authorized deductions, the workers´ profit sharing paid in the tax year, the tax losses carryforwards from previous tax years and, consequently, sufficient evidence would be obtained on the effective IT rate.
If you have any questions regarding the foregoing, please do not hesitate to contact us.
 Reference parameters for IT taxpayers that will be published by the TAS according to the economic sector or industry.
Mexico City, June 14, 2021