SAT doubles tax collection via audits of large taxpayers

During the government of Andrés Manuel López Obrador, the SAT has audited 1.3 billion pesos from large taxpayers, more than 106% in real terms than what was collected for this same concept from 2013 to 2018, when Enrique Peña Nieto was president.

The fruit of audits

In a statement, the SAT said that the amount collected through audits of large taxpayers has been more than 1 billion pesos during the six-year term.

Large Taxpayers: 1 trillion 380 thousand 812 million pesos collected.

Small and Medium Taxpayers: 1 trillion 56 thousand 576 million pesos collected.
Compliance Promotion (invitations): 945 thousand 962 million pesos raised.

These actions are part of the Master Plan implemented by the Head of the SAT, whose objective is to increase the collection of taxes from large taxpayers through: Audits to avoid aggressive tax planning, increased risk perception among large taxpayers and legal certainty for the taxpayer.

According to the SAT, 5 audits were scheduled with a more assertive approach and with less inspection time, covering up to five previous fiscal years. These audits have focused on Encourage self-correction and timely collection, eliminating the backlog of tax credits and purifying the portfolio.

In addition, verification of the application of balances in favor of value added tax (VAT) has been strengthened.

What is a SAT audit of large taxpayers?

An SAT audit of large taxpayers is a thorough review of a person or company’s accounting information. These audits are carried out when the SAT detects inconsistencies in the information declared or when it is determined that tax obligations are not being met. During the audit, the SAT may review documents such as:

Accounting
Books
Financial records
Proof of income and expenses
Bills
Contracts

Who are the big taxpayers in Mexico?

In Mexico, the term “large taxpayers” refers to credit institutions, publicly traded companies, international organizations, and legal entities with high incomes that pay taxes under the general Income Tax (ISR) regime. These taxpayers are subject to certain special tax obligations and regulations.

Classification criteria

The classification as a “large taxpayer” is determined by the Income Tax Law, the Federal Tax Code and the Regulations of the Tax Administration Service. Currently, the registry of large taxpayers amounts to 11,909 companies, representing 0.02% of the total.

To be considered a large taxpayer, a company must have annual revenues of more than 1.5 billion pesos (mdp) per year, in addition to considering the value of its assets, the amount of taxes paid and other relevant economic factors, explains the Center for Public Finance Studies.