The Mexican government has decided to delay this decision until February 2021.
It is hopeful the related profit-sharing consequences of such actions will also be addressed
However, impending legislation is not to be understated, as the breadth of their mandatory disclosure rules are both expansive and transparent moreso than the EU DAC6 provisions.
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.