Tax Audit Powers in Mexico: Effects on Tax Revenue Collection and the Business Sector

Abstract

This article presents research based on a practical case involving a company that qualifies as a taxpayer, whose business activity is the construction of family housing, and which was reviewed by the Tax Administration Service (SAT) for compliance with its tax obligations. The study analyzes the SAT’s audit powers, the authority of its officials to issue actions such as freezing the taxpayer’s bank accounts, the overreach of such powers, the consequences of failing to provide accounting information, the taxpayer’s right to request the unfreezing of accounts, the amparo lawsuit as a means of legal defense, in the taxpayer, the collection of contributions, and an overview of the new Amparo Law.