Cancellation of the Universal Compensation, Protection of Taxpayer’s Rights by Amparo

January / 23rd / 2019

One of the first direct tax and financial effects that will derive from the Federal Revenue Law for the year 2019 for taxpayers who regularly take advantage of their balances in favor of federal contributions against balances in charge of others they cause, through the universal compensation, is the termination of this benefit. This will imply that such balances will only be taken advantage of through the regular way of return, with the problems in time and the procedure it entails. 

One of the first direct tax and financial effects that will derive from the Federal Revenue Law for the year 2019 for taxpayers who regularly take advantage of their balances in favor of federal contributions against balances in charge of others they cause, through the universal compensation, is the termination of this benefit. This will imply that such balances will only be taken advantage of through the regular way of return, with the problems in time and the procedure it entails. 

Some business representations have already been reviewing along with the supervisory authority various alternatives or concessions so that some taxpayers (e.g., those in compliance) are not affected by their cash flow, or that the balances in favor that can no longer be universally compensated are those generated as of the current year; however, there is no tangible progress in these or other solution proposals.

However, a miscellaneous rule was recently issued allowing balances in favor generated as of December 2018 to be offset against their own taxes, but no more attractive concessions were issued.

With regard to the first of the examples cited, to date, there is no certainty that the SAT will issue, in a timely and appropriate manner, the general rules so that taxpayers who have complied with them can continue with the universal compensation. And here comes something very delicate:

1. Many companies have favorable balances generated in 2018 and will seek to apply them against the first provisional payment of income tax in 2019. However, if they are not only balances of their own or direct Income Tax, they will not be able to compensate them, since the Federal Income Law that came into force last January 1 precisely cancels the universal compensation.
2. If the opportunity is allowed to pass so that, in the first act of possible compensation, the Amparo lawsuit is not attended -due to the new rules- it will no longer be possible to request Amparo in the following compensations because the Amparo lawsuit must be presented within 15 days following that first act that violates the rights of the individual.

Given the current events, what is the situation of your companies?

We offer you the possibility of protecting your interests through the services of our Firm, after analyzing the impact that the above rule will have on your finances.

We look forward to hearing from you to review your situation and the feasibility of interposing the aforementioned means of defense.