Each day, the rejections of applications filed by taxpayers in connection with tax refunds increase.

In 2014, the Tax Administration Service (Servicio de Administración Tributaria (SAT)) rejected 8,035 applications from artificial persons amounting to 75,230 million pesos.  Regarding individuals, 899 persons were denied the amount of 462 million pesos.  The main taxes for which a refund is requested are Income Tax and Value Added Tax, most rejections are on VAT in more than 80% of the proceedings. 

A significant factor is the amount of time it takes for a proceeding to be solved, which exceeds by far the terms established by tax laws. 

It has been known that on occasion, the reasons argued by the authority to deny a refund application are not very clear and occasionally, are not property substantiated. 

One of the most common reasons is compliance with documentation or information requirements, which, in the majority of cases are excessive and unclear, occasionally these data are unrelated to the refund application; all this generates administrative burdens upon taxpayers.