This Informational Notice refers to Transitory Article Third of the Law of Income of the Federation for the fiscal year of 2013, published on December 17, 2012 in the Official Daily of the Federation (“DOF”), whereby guidelines for the total or partial Condonation (the “Condonation”) of tax assessments issued by the Tax Administration Service (the “SAT”), antidumping duties, updates and accessories of both, as well as fines for lack of fulfillment of federal tax obligations, other than payment obligations.
Condonation of 80%
The Condonation of 80% will be granted to taxpayers in the case of tax assessments of federal contributions, antidumping duties and fines for lack of fulfillment of federal tax obligations incurred prior to January 1, 2007, other than updated tax payment obligations. Interest, interest arising from deferred payments or installment payments, as well as fines and enforcement expenses are eligible to obtain the Condonation of 100%. The Condonation will be granted, provided that any amount not subject to the Condonation, that is 20%, is paid in full.
Condonation of 100%
The Condonation of 100% will be granted to taxpayers subject to tax audits carried out by the SAT during the fiscal years of 2009, 2010 and 2011, upon verification of the corresponding taxpayer compliance with tax obligations or payment of taxes omitted which fully comply with their tax obligations.
The Condonation of 100% will apply to interest and fines arising from tax assessments resulting from antidumping duties and federal contributions, other than those that taxpayers are obligated to withhold, transfer or collect, as well as fines for lack of compliance with federal tax obligations accrued between January 1, 2007 and December 31, 2012. To be vested in the right to the Condonation of 100%, taxpayers must pay in full the applicable antidumping duties or federal contributions adjusted by inflation.
Vesting the Condonation
The Condonation may be granted, vis-à-vis, tax assessments issued by the SAT and self-determined tax obligations by taxpayers, either spontaneously or by correction. For this purpose, taxpayers must file before the Local Administrative Services to taxpayers with jurisdiction over their tax address, using the formal application and annexes issued by the SAT pursuant general rules. The SAT will also issue the necessary rules to implement the Condonation, which will be published in the DOF during the month of March of 2013.
The Condonation will be applicable to deferred tax assessments or being paid on installments, as set forth in the preceding paragraphs regarding the payment of any outstanding balances.
The Condonation to the tax assessments above-mentioned will be processed regardless of whether these are subject to challenge, provided that on the date of filing the Condonation Application, any administrative proceedings are concluded with a final resolution or evidence of withdrawal of same is enclosed.
The Condonation Application of federal tax assessments administered by federal tax authorities residing in any of the States of the United Mexican States must be directly filed with said tax authorities which will resolve such Condonation Application in accordance with the applicable guidelines and general rules issued by the SAT.
Situations under which the Condonation is not applicable
Tax assessments paid by taxpayers will not be granted the Condonation nor a refund, compensation, credit or balance in their favor.
The Condonation will not be granted to tax assessments arising from violations which have received resolutions based on the applicable provisions of criminal law against taxpayers.
The Condonation will not be available to payments in kind or tax compensations.
Condonation resolutions are not challengeable
Resolutions issued in Condonation Applications are not challengeable.
Suspension of Administrative Attachment Procedures
In the event taxpayers fail to pay tax assessments and accessories not subject to the Condonation, such failure will give rise to the right of tax authorities to initiate administrative attachment procedures (the “PAE”) and any Condonation Application being processed will be rejected.
The SAT may suspend the PAE upon the request of such taxpayer that may be applying for the Condonation, subject to the payment of any tax assessments and accessories, as above-mentioned.
Condonation of Fines imposed during the fiscal years of 2012 and 2013 are of 60%
Fines imposed for the lack of fulfillment of any federal tax obligations, other than payment obligations, with the exception of those arising from tax losses declared in excess, will be reduced by 60%; provided, however, such fines are paid within 30 days as of their notification.
Taxpayers with pending tax payments or with pending challenged tax assessments will be eligible to request the Condonation during the fiscal year of 2013