Mexico: Mexican taxpayers’ advocacy institution issues recommendation on Mexican tax authorities’ requests for notarisation of private documents

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Mexico: Mexican taxpayers’ advocacy institution issues recommendation on Mexican tax authorities’ requests for notarisation of private documents

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David Cuellar


Luis Leon

Under article 42 of the Mexican Federal Tax Code presently in force, the Mexican tax authorities are empowered to request all necessary documentation to verify that taxpayers, jointly and severally liable parties or related third parties are compliant with applicable tax provisions. In this regard, the Mexican tax authorities may assess the evidentiary value of the documents provided by taxpayers in the course of a tax review. For approximately 10 years now, the authorities have occasionally requested the notarisation of private documents (for example, contracts) submitted to them by taxpayers, in an effort to curb what are deemed as non-compliant tax practices.

Notwithstanding the above, the Mexican Federal Code of Civil Procedures (which is of supplementary application in the absence of specific tax legislation) in general terms deems a private document as proof of the facts stated therein. On August 2014, the Mexican Attorney General's Office for the Defence of Taxpayers' Rights (PRODECON, per its acronym in Spanish) released a public recommendation stating that the Mexican tax authorities should abide by the information set forth in a private document submitted by a taxpayer, with no need for notarisation of said document. In the view of the PRODECON, the Mexican tax authorities' position of requiring the notarisation of private documents transgresses fundamental rights to legality, legal certainty and legal security.

As of today, most taxpayers are not keen on notarising private documents due to the additional administrative costs and burden that such a process entails. On the other hand, despite the issuance of the PRODECON's recommendation mentioned above, the Mexican tax authorities are still requesting the notarisation of private documents submitted by taxpayers.

In view of the above, Mexican taxpayers may want to evaluate the convenience of notarising private documents to avoid potential issues with the Mexican tax authorities, notwithstanding the recommendation issued by the PRODECON, versus the additional administrative costs and burden that such a process would entail, which in practice should generally not be that relevant.

David Cuellar (david.cuellar@mx.pwc.com) and Luis Leon (luis.leon.robles@mx.pwc.com)

PwC Mexico

Tel: +52 55 5263 5816

Website: www.pwc.com

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