Yucatan is no longer a favorable state for tax evation: Expert

With the recent  financial law changes, tax evation has become a lot more diffcult task for local entrepreneurs.

MERIDA – “The use of “ghost bills” to simulate the deduction of expenses and evade taxes is no longer that easy to achieve”, declared Juan Manuel Franco Gallardo, tax expert from the BDO office in Mexico City.

“According to the tax law, any buy or acquisitions made, must now be justified and be strictly indispensable for labor or coporative purposes, or otherwise it could become suspicious for the SAT (Mexican IRS), “even when whoever purchases or sells those bills pay their taxes.” Franco Gallardo explained.

In a press conference organized by the Mexican Institute of Finance Executives, he said that the practice of “ghost bills” has become risky, since it could be considered as money laundering.

Regarding the supposed market for the sale and purchase of this type of invoices in Yucatan, Franco Gallardo said that he only remembered that years ago, in some parts of the country, it was said that Yucatan was a favorable state to evade taxes, thanks to certain loopholes in the Civil Code.

This allowed many companies to declare the payment of a minimum part of the salaries and most of them through outsourcing companies, whose creation was tolerated, until the law was changed.

The expert in taxes Juan Manuel Franco Gallardo stated that in Merida there is still a huge disagreement with the next electronic invoicing 3.3 due to the difficult that it represents to its application in the companies’ accounting.

Source: www.yucatan.com.mx