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David Cuellar |
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Jose Luis Olvera |
On December 7 2009, certain regulations to the Federal Tax Code were published in the Mexican Official Gazette.
One of these regulations specified that an independent accountant who provides tax advisory services to a taxpayer/client for whom the independent accountant also issues the annual tax audit report would not be considered independent with respect to the latter report, thus imposing further restrictions to the public accountants in the rendering of non-audit services.
This regulation created uncertainty for both taxpayers and independent accountants regarding the provision of tax advisory services and the issuance of tax reports. So on December 28 2009, the Mexican tax authorities published a rule within the miscellaneous tax rules offering guidance.
The rule states (as it has always been stated in the general conduct norms of the accounting practice) that having an independent accountant or firm providing both external audit and tax advisory services does not imply lack of professional independence, as long as the services provided do not include the accountant participating or being responsible of the managerial and financial decisions of the relevant taxpayer.
Therefore, there should be no new restrictions applicable to an independent accountant or firm with respect to the rendering of tax advisory services to a client for which the accountant or firm also issues tax audit reports.
Hence, Mexican certified public accountants may continue to provide tax services as they have usually done in the past.
In other words, it is business as usual for independent public accountants in Mexico.
David Cuellar (david.cuellar@mx.pwc.com) and Jose Luis Olvera (jose.l.olvera.salcedo@uk.pwc.com)
Mexico City
