Tax litigation What does it consist of?

Sep 9, 2022 | Tax litigation | 0 comments

When we talk about tax litigation we refer to the defense of a company before tax authorities such as the Mexican Social Security Institute (IMSS) or the Tax Administration Service (SAT).

Although a tax litigation is not merely a lawsuit, it is a conflict of interests that leads to a trial where each party involved has its corresponding defense to obtain a resolution.

Due to the changes made in recent years by the Government, with the taxpayers’ compliance with their tax obligations, the level of demand has increased.

Many companies began to file some complaints due to these situations that have left them in unfavorable positions and some have opted to seek legal help for disagreements.

 

What is a tax debt?

If a company defaults on payments or fines, owing the tax authorities, your options are to pay the debt or, if you are unhappy with the matter, to seek defense as soon as possible.

These may also be some of the important data of the annual tax return for legal entities that you should know before the SAT.

On the other hand, if you are in the Specialized Services Registry, you could also face fines and problems for not following the necessary tips for the REPSE audit.

 

Reasons for requesting tax litigation:

Some of the most common issues that companies face against the tax authorities and for which a lawsuit is desired are:

  • Unfair application of the tax law
  • Collection of amounts not in accordance with the Law
  • Disregard of legitimate rights of companies that allow them to optimize their tax burden
  • Refusal to recover amounts overpaid to the tax authorities

If you want to learn more about the current situation in Mexico on this issue, please visit How is tax litigation in Mexico?for more information.

Now, when we talk about a lawsuit, it is important to understand that it is a process that can take time and that, in fact, its resolution can take years, for this very reason it is not a decision that should be taken lightly.

Other decisions that should not be taken lightly are the obligations of a specialized services company before STPS Do you already know them?

Even with good counsel and a good defense, it should be considered that success is not guaranteed and that the best thing to do is to prepare the correct documents, commitment on the part of the defense and follow the trial very closely.

ALCON is an accounting firm that can provide you with tax advice and create a network of contacts necessary for the correct execution of a tax litigation.

At ALCON we have experts who can help your company!Contact us at!

Via WhatsApp or at contacto@alconmx.com

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