Mexico continues to make headway in the application of technology to tax procedures. From the second half of this year, the Tax Administration Service (SAT) is expected to carry out 4000 electronic audits to verify taxpayer statements.
The tax authority’s aim is to combat tax evasion by private individuals and corporations, making use of the facilities now provided by digital systems. The spread of e-invoicing, with over 500 million CFDIs monthly, along with electronic accounting, paves the way for more automated, faster and foolproof audits.
The SAT currently performs 45,000 traditional paper-based audits each year. This figure is far from the 4000 e-audits to be carried out in the second half of 2016. However, the head of the tax agency, Aristotle Sánchez, has stated that these initiatives will gradually be increased.
The process will compare the taxpayers’ statements with the income earned, according to their CFDI e-invoices. In addition, the related statements of customers and suppliers will also be reviewed. In the event of any discrepancies between the data, an electronic inspection will be set in motion.
Taxpayers due to be investigated will receive notice beforehand, informing them of the scope of the audit. In this sense, the SAT CEO explains that the Tax Mailbox will be a great help, both when checking that the formalities have been completed correctly and to challenge decisions or keep in touch with the IRS. In fact, as it stands today, roughly 1 million taxpayers have already joined the system (mostly companies).