Table of Contents

• Introduction
• I. Due Process Taxpayers’ Rights
•  Status of Tax Proceedings
• Tax Authority Identity
• Allegations and Evidence Offering
• Being Heard at the Administrative Proceeding
• Information at the Inception of Verification Reviews
• Legal Abode to Receive Notices
• II. Promotion of Cooperative Compliance
• Information and Assistance
• Certification and Copy of Filed Tax Returns
• Documents in Possession of the Tax Authority
• Respectful and Considerate Treatment by the Public Servants
• Less Onerous Acts
• III. Regarding the Substance of the Tax Duty
• Tax Reimbursements
• Confidential Nature of Data, Reports, Or Background
• Correction of Tax Situation

Introduction

Like many other countries, Mexico has a complex tax system composed of laws and regulations scattered in different statutes of identical hierarchy and dependency. These legal bodies, such as Income Tax Law, Valued Added Tax Law, the Federal Tax Code, and other legal provisions related to excise taxes, put taxpayers in legal uncertainty about their rights. This is because some of them contradict each other or bar rights granted by another. 

To add more problems to this system, the Tax Administration Service (Mexico’s Internal Revenue Service or His Majesty’s Revenue and Customs counterpart) has a legal faculty pursuant to article 33, section I, subsection g) of the Federal Tax Code[1] to issue general provisions aimed at clarifying how taxpayers shall comply with the tax law, such as the procedures to pay fines, collect taxes, change tax brackets, submit forms for tax exemptions, subsidies, change legal abodes or domiciles, and so on. However, in some cases, these general provisions can change the intention and meaning of what is stated in the law, even though that’s illegal. 

On the other hand, the evolving new informatic technologies, which increased tax collection and the growth of foreign investment, resulted in the demand for clearer assurance in Mexico’s tax system in order to cure its complexity. One of the first steps to approach these demands was enacting the Federal Taxpayers’ Rights Law in 2005, which sought to standardize basic rights and guarantees while dealing with tax authorities. 

But before depicting the rights contained in the abovementioned law, it’s essential to clarify whether Mexican tax authorities are obligated to use an interpreter while dealing with foreigners. This issue is important because some accountants and lawyers advocate that aliens have the right to be assisted by an interpreter while dealing with Mexican tax authorities at the expense of the latter mentioned, pursuant to article 14 of Mexico’s Migration Law[2]. However, I think this may not be correct.

First off, article 1 of Mexico’s Migration Law undoubtedly avers the law’s purpose is to regulate the entry and departure of Mexicans and foreigners into and from Mexican territory, as well as transit and stay in such territory. Therefore, according to the legal principle of the specialty construction of the law, this legal body only applies to the hypothesis regulated for those objectives. That is, those related to migration.

Furthermore, while it is true that our tax system is not only composed of tax laws themselves but other legal provisions of different natures that could aid in construing the meaning of tax duties, it’s also true that to make applicable those other legal provisions, the lawmaker must to authorize it expressly. A case that doesn’t occur with the hypothetical obligation of Mexican tax authorities to provide foreigners with an interpreter at their expense. This is certainly not so.

On the contrary, we can find in our tax legislation, for example, the obligation of companies and individuals to translate the documentation that integrates their accounting by an expert translator authorized by the competent authority, pursuant to rule 2.8.1.2 of the Mexican Miscellaneous Tax Resolution of 2023[3]. Likewise, we find analogous legal provisions in the Federal Tax Code and Income Tax Law.

On the other hand, if we accept as a principle that one of the purposes of tax law is to collect money from taxpayers in the fastest and most economical way and use it to satisfy society’s needs. So, it would be nonsense for tax authorities the obligation to provide interpreters for foreigners in order to explain to them the scope of our legal tax system, which, in essence, represents an expenditure and, with this, to be able to collect more money. The aforementioned, taking into account the enormous number of languages spoken in the world and the trouble of finding reliable interpreters. 

Whatever it may be, one thing is true: our Mexican Supreme Court of Justice hasn’t resolved a case where a foreigner alleged that Mexico’s tax authorities transgressed their rights for not providing an interpreter or a proper translation of its acts and therefore interfered with his right of being appropriately informed of their taxpayer’s rights and obligations. At most, we have interesting cases in which Mexico’s Supreme Court decided on tax-criminal trials regarding the duties of tax authorities to respect the right of consular assistance by informing the taxpayer’s embassy in cases like smuggling, tax fraud, and tax evasion. 

That being said, according to the Federal Taxpayers’ Rights law, the Mexican lawmaker divided taxpayers’ rights into three different groups: I. regarding the due process of law, II. promotion of cooperative compliance, and III. the substance of the tax duty. Groups which I will mention hereafter.

I. Due Process Taxpayers’ Rights

 Status of Tax Proceedings

The right to be informed of the status of any proceedings in which the taxpayer is a party.

Tax Authority Identity

The right to know the identity of the tax authorities under whose responsibility the procedures in which taxpayers have an interest are dealt with.

Allegations and Evidence Offering

The right to make pleadings, present and offer as evidence documents following the applicable tax provisions, including the administrative file from which the contested act emanates, which shall be taken into account by the competent bodies when drawing up the relevant administrative decision.

Being Heard at the Administrative Proceeding

The right to be heard before issuing a decisive tax credit resolution under the terms of the respective laws.

Information at the Inception of Verification Reviews

The right to be informed, at the beginning of the powers of verification of the tax authorities, such as audits, desk, and electronic reviews, of their rights and obligations in the course of such actions and to be developed in the deadlines provided for in the tax laws.

Legal Abode to Receive Notices

The right to identify, at the time of proceeding before the Federal Tax and Administrative Justice Court, a domicile to hear and receive notices located anywhere in Mexican territory, except when taxpayer domicile is within the jurisdiction of the pertinent courtroom of such court, in which event, the domicile identified to receive notices will be that located within the territorial circumscription of such courtroom.

II. Promotion of Cooperative Compliance

Information and Assistance

The right to be informed and assisted by Tax Authorities regarding fulfilling tax obligations and the content and scope of these. 

Certification and Copy of Filed Tax Returns

The right to obtain certifications and copies of statements submitted by the taxpayer, conditioned to the payment of the applicable dues established under the law.

Documents in Possession of the Tax Authority

The right not to deliver documents already in possession of the acting tax authority.

Respectful and Considerate Treatment by the Public Servants

The right to be treated respectfully and with consideration by the tax authority and its servants.

Less Onerous Acts

The right to ensure that the actions of the tax authorities that require their intervention are carried out in a way that is less burdensome to taxpayers.

III. Regarding the Substance of the Tax Duty

Tax Reimbursements

The right to obtain applicable tax reimbursements in terms of the Federal Tax Code and applicable tax laws.

Confidential Nature of Data, Reports, Or Background

The right to confidential personal data of taxpayers and third parties related to them, reports or background, held by public servants of the tax administration.

Correction of Tax Situation

The right to amend its tax condition derived from audit procedures carried out by the tax authorities. 

By Omar Gómez

Partner

beLegal abogados S.C

Abogados en Ciudad Juárez, Chihuahua, México

Administrative, Constitutional, and Tax Attorney

Visit my personal website at www.ogomezabogado.com

Contact me at: [email protected]

Contact the firm at [email protected] or call us at (656) 774-75-73 for English assistance.

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[1] Article 33. The tax authorities for better compliance with its faculties, will be as follows:

I. They will provide free assistance to taxpayers and for this they will seek: […]

G) Publish annually the resolutions issued by the tax authorities that establish general provisions grouping them in a way that facilitates their knowledge by the taxpayers; Those provisions whose effects are limited to periods of less than one year may be published in isolation. The resolutions that are issued pursuant to this subsection and that refer to subject, object, base, rate, or tariff, will not generate obligations or additional charges to those established in the tax laws themselves. […].

[2] Article 14. When the migrant, regardless of immigration status, does not speak or understand the Spanish language, a translator or translator will be appointed interpreter who has knowledge of your language, to facilitate communication.

When the migrant is deaf and knows how to read and write, he will be questioned in writing or through an interpreter. Otherwise, a person who can understand it will be designated as an interpreter.

In case of a conviction of a migrant, regardless of his immigration status, the judicial authorities will be obliged to inform him of the international treaties and conventions signed by the Mexican State on the transfer of prisoners, as well as any other that could benefit them.

[3] Rule 2.8.1.2. For the purposes of articles 28 of the Federal Tax Code and 33, Section B, Section XI of its Regulation, taxpayers may record the documentation that integrates their accounting, including the documentation that supports operations carried out, in a language other than Spanish. In this case, the tax authorities may request its translation by an expert translator authorized by the competent authority for this purpose.

In the case of tax refunds and notices of compensation, the supporting documentation in a language other than Spanish, which covers the operations of the taxpayers, must be accompanied by its corresponding translation into Spanish by an expert translator authorized by the competent authority for this purpose.