ARTICLE · 14 OCTOBER 2005

New Contributor´s Federal Law

Sanchez Devanny

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On June the 23rd 2005 was published the Ley Federal de los Derechos del Contribuyente, ( "LFDC" or Contributor's Federal Law) in the Official Federal Gazette, which is composed by 27 articles, this Federal Law is intended to regulate the contributors basic rights and guarantees before the tax authorities.

MexicoTax

José Duarte C.

Álvaro Mena

On June the 23rd 2005 was published the Ley Federal de los Derechos del Contribuyente, ( "LFDC" or Contributor's Federal Law) in the Official Federal Gazette, which is composed by 27 articles, this Federal Law is intended to regulate the contributors basic rights and guarantees before the tax authorities.

Perhaps the most remarkable aspect of the LFDC, is that contains a considerable reduction of the fines due to tax infractions.

Indeed, the LFDC establishes a 20% fine for those contributors who fulfill their tax obligations before the tax authorities conclude a revision, which means before the "final minute" ( acta final ) is issued during an official inspection.

Besides, a 30% fine is established for those contributors who fulfill their tax obligations before the tax authorities issue a resolution that impose the payment of federal taxes. This fine is lower than the 40% fine contained in the Federal Tax Code for such conducts.

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