Strategizing Multinational Tax Risks

Mexico has has announced its proactive e-auditing plan, as detailed in EY’s Tax Alert.

This type of audit will require a new skill set by the business:

• E-mail governance, as the lack of a response signifies deemed acceptance of an assessment
• Proactive audit management, not relying on letters and physical meetings
• Coordination with Corp. HQ/Regional Tax for advance appeal planning
• Pre-audit electronic reconciliation
• Electronic cross-reference processes during the year for self-verification to identify gaps
• IS expertise to ensure proper governance

This type of auditing, as well as joint audits, etc. signify a new trend for tax administrations having to cope with less resources and the intent to capture a fair share of tax.

Click to access 2016G_02849-161Gbl_MX%20Tax%20Authorities%20to%20start%20e%20audits%20during%20September%202016.pdf