On June 25, 2019, the Supreme Court of Justice of the Nation (SCJN), in the ordinary session of the Full Court, analyzed and confirmed one of the assumptions of tax fraud stated in paragraph V of Article 109 of the Federal Tax Code (FTC).

This legal provision establishes the assumptions by which it will be sanctioned with the same penalties as of tax fraud, to whom:

• Omits to file, for more than 12 months, tax returns of a definitive nature.

• Omits to file the tax return of one fiscal year (annual tax return).

In the analysis of this substantial provision, the SCJN ruled that fraction V of Article 109 of the FTC is not unconstitutional derived from the fact that it does not breach the constitutional principle of limitation; nevertheless, at that meeting, the court did not conclude if, in the case of tax fraud abovementioned, both assumptions are to be met.

However, in a regular session of the Full Court on June 27, 2019, it was pointed out that once one of the assumptions is met, then such is enough to be deemed as a crime of tax fraud, derived from the fact that there are taxpayers who are subject to annual taxes - case of Income Tax - and others who are subject to definitive tax returns - case of the Value Added Tax.

This resolution of the SCJN makes it clear that, regardless of the type of taxpayer and their obligations, the noncompliance in tax matters may lead to criminal problems for the company’s legal representative. Based on this, we recommend due compliance with all tax obligations to avoid possible contingencies in tax matters and even criminal proceedings.

If you have any questions or need advice, please do not hesitate to contact us.

Bibliography:

http://www.internet2.scjn.gob.mx/red2/comunicados/noticia.asp?id=5904

https://www.sitios.scjn.gob.mx/video/?q=video/2278