Mexico’s Lower House Passes Budget to Strengthen Tax Crackdown

The Mexican Chamber of Deputies approved Wednesday a host of new provisions aimed at bolstering the tax authority’s ability to clamp down on avoidance and evasion.

The tax portion of the 2021 budget, approved in a 283-129 vote, would allow the Mexican tax authority, known as the SAT, to suspend taxpayers’ digital seal certificates if they are suspected of issuing fake invoices. Without a digital seal, taxpayers wouldn’t be able to continue their operations or transactions. Previously, digital seals were temporarily restricted, but not canceled.

The proposed change is part of the government’s crackdown on “factureras,” which are shell ...