This Plan maintains the audit actions only against "captive" taxpayers.

On January 22, the SAT released its master plan for auditing and revenue collection 2024. The document reveals that this year the SAT will focus on carrying out various auditing actions; however, none of it contemplates actions to attract new taxpayers, which calls on compliant taxpayers to be even more alert.

The main audit actions for this year will be:

Actions to recover tax credits from taxpayers with potential collection through the implementation of tax collection and enforcement actions such as:

• Strengthening of persuasive actions for the collection of tax credits.
• Increase in collection actions against taxpayers with unsecured tax debts.
• Coordination with the States to increase audits, operations, auditing, and tax collection of tax debts.

Restriction of CSD to taxpayers with simulated operations

Keep in mind that in Mexico Invoicing is Electronic, and the use of the Digital Seal Certificate (CSD) is essential, in this regard the fiscal authority has the faculties to cancel them in the event it detects that simulated operations have been carried out, for this reason we recommend a continuous monitoring of your suppliers. The use of a monitoring system, such as the one managed in our firm, can help detect, alert and prevent these situations.

Follow-up with taxpayers who fail to comply with the deadlines in the payment of their tax obligations

Our firm´s extensive experience and our technical capacity, allows us to support you so that you can comply in a timely manner with all your tax obligations, and the greatest possible ease and agility, anticipating any risk situation through a mapping of applicable tax obligations and the due follow-up to each one of them.

Use of AI (Artificial Intelligence) for better planning in tax collection processes

By 2024, the tax authorities' tax audit plan for the first time includes the use of Artificial Intelligence (AI), through the implementation of "graph" and "machine learning" analytical models, to classify high-risk tax payers, identify complex tax evasion networks, and detect inconsistencies in Digital Tax Receipts via Internet (CFDI).

This "AI" technology will be used in general for auditing, but will be mainly focused on the following sectors and activities that the tax authorities consider high-risk:

• Automotive
• Alcoholic beverages and cigarettes.
• Construction.
• Pharmacist.
• Logistics.
• Technological platforms.
• Real estate services.
• Insurance and financial services.
• Transportation.
• Fuels.
• General operations involving foreign trade taxes.

In our firm we have preventive processes that consist of verifying, with the use of technology, that the accounting information of a company matches the tax information held by the authority (CFDI). In the event that variances are detected between the accounting information and the tax information in the SAT databases, the cause will be investigated to correct them. The differences may be due to accounting errors, errors in the issuance of CFDI´s or tax irregularities.

This preventive activity is important to minimize and even avoid audits or sanctions by the SAT.

Review of schemes, concepts and behaviors used to evade tax burdens

We suggest cautions with the plans offered by some advisors, who promise certain tax benefits.   Since this 2024 tax audit plan announces actions focused on identifying due compliance with requirements and fighting simulation, mainly in schemes such as:

• Use of private pension plans, assimilated to salaries, subcontracting and RESICO to avoid the correct payment of payroll.
• Corporate restructuring, and the tax effects of international spin-offs, mergers and restructurings.
• Disposals of shares and other intangible assets.
• Improper use of credit balances, VAT on 0% rate transactions, non-object VAT and import VAT.
• Use of tax losses and tax incentives.
• Review of partners and shareholders in operations associated with restructurings.
• Misuse of treaty benefits and verification of origin.
• Financing, capitalization of liabilities and distribution of profits.
• Undervaluation based on incorrect customs valuation, tariff classification and inconsistent declarations in the import documents.
• Non-compliance with IMMEX programs, temporary imports and import permits.
• Among others.

Strengthening reviews of foreign trade operations

During 2022 and 2023, this action was the one that gave the authorities the best result, collection derived from audits. Investing in a Foreign Trade Compliance Review (Health Check) would help reduce the inherent risk to these operations through detailed analysis, designed to detect potential risks of each operation, and propose solutions based on best practices.

It is important to consider that this 2024 Master Plan for Taxation and Collection includes programming and taxation efforts that will be focused on the following sectors:

• Automotive
• Alcoholic beverages and cigarettes
• Wholesale and retail trade
• Construction
• Electronics
• Entertainment and shows
• Pharmacist
• Hydrocarbons
• Hotel and lodging
• Logistics and transportation
• Metallurgist
• Parcel and courier services
• Technological platforms
• Advertising
• Insurance and financial services
• Real Estate Services
• Private education services
• Private health services

Considering the 2024 taxation plan for by the authorities, it is essential to be in compliance with your tax obligations. We can provide your company a proactive risk diagnosis.

If you have any questions, J.A. DEL RÍO offers its experts to advise you, we are at your   service at the following e-mail account: contacto@jadelrio.com