PROBLEMS
By means of a home visit order, our client was required to provide the books and records that are part of his accounting in accordance with Article 53, paragraph a) of the Federal Tax Code.
As a result of the home visit that was being carried out, the Tax Authority determined the alleged omission of the Income Tax, in accordance with Article 60, of the Income Tax Law, since it referred that our client updated the assumption of Income from unregistered purchases raised to income, by having goods indicated by the Authority as “Fixed Asset”, referring that they were not duly registered for the purposes of the accumulation of their income, contemplating that their registration should have been carried out for the purposes of demonstrating that each of the goods subject to verification had been correctly declared for Income Tax purposes in terms of provisional payments.
It should be noted that derived from the inconsistencies detected by the authority, it was presumed that a tax credit charged to our client in the amount of $ – 000,000.00 pesos (figures in millions, expressed with – for confidentiality of the information) was presumed.
ACTIONS AND STRATEGIES IMPLEMENTED BY OUR FIRM.
In order to implement the most appropriate defense strategies within the Home Visit Practiced, our group of specialists proceeded to carry out a thorough analysis and evaluation of the information related to the case, so at the appropriate procedural moment a brief of Evidence and Allegations was prepared and presented to the Decentralized Administration of Foreign Trade Audit, offering information and documentation for the purpose of disproving the irregularity detected by the Tax Authority.
The main defense was to disprove that contrary to what was determined by the Supervisory Authority, the goods subject to verification should not be considered as a Fixed Asset, since they were subject to a Capitalization of Liabilities, being therefore that they could not be considered as a Cumulative Income, especially since it was demonstrated that the pedimentos of the audited goods were duly registered and declared based on the correct concept, so consequently such goods could not be accumulated as Income for the payment of Income Tax.
Similarly, all the supports that accredited the capitalization of Liabilities were integrated and presented.
RESULT
Based on the grounds of the arguments and strategies implemented for the substantiation of this Audit Procedure, a FAVORABLE RESOLUTION IN ADMINISTRATIVE PROCEDURE was obtained, leaving without effect the presumption of irregularities and therefore of tax credit, which also avoided a large contingency in charge of our client and the initiation of prolonged trials, since the matter was resolved favorably in the administrative stage.
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