The conclusive agreement constitutes another tax conflict mechanism for taxpayers subject to a tax audit, with the aim of reaching a conciliation agreement with the service. Prodecon supports both parties as mediators. 4. Pardon/Cancellation Fine. The final agreement allows taxpayers to reduce fines by up to 100%. With regard to double taxation conventions, Mexico has not amended a substantial number of international conventions it has signed with regard to these issues. Yet Mexico has signed the multilateral BEPS treaty, although it is not yet in force, since it has not been ratified by the Senate. 1st deadline. A final agreement takes about four to nine months, compared to two to four years for a final solution in an annulment procedure.
The conclusive agreement procedure is an alternative method for dealing with tax disputes. Its purpose is to resolve the differences between the tax administration and taxpayers without using traditional defense methods, such as administrative complaint and application for nullity. During the final unification procedure, the taxpayer does not have to provide a guarantee to guarantee a possible absence of tax. 5. Suspension of Terms. The final agreement suspends all conditions of the review until the final agreement procedure is completed. Penalties are completely removed when the taxpayer concludes a final agreement for the first time. In subsequent cases, penalties should be imposed and reduced in accordance with the legislation in force. As described in 7.4 steps of administrative and criminal proceedings, it is possible to conclude an agreement with the tax authorities in order to avoid criminal proceedings; the only condition for the conclusion of such an agreement is the agreement of the tax authorities as victim and defendant. This article focuses on the final agreement option.
Articles 69-C to 69-H of the Mexican Federal Tax Code and the Prodecon guidelines govern the procedure and application of the final agreement. 3. Link. It saves the costs of the nullity guarantee, since the taxpayer is not obliged to guarantee the assessment of defects in the final agreement procedure.. . . .