Here’s another one!
When filing your business’s annual tax declaration, you make out the onerous paperwork – well, your accountant does because the Mexican tax system is so complicated that it is virtually impossible for anyone to understand what the hell it is you are supposed to actually put in the scores of little boxes and what to deduct or declare – and you file it, paying at the bank via internet since Mexico is such a modern country. Once you have paid and received/printed your receipt, and have verified that your money has been removed from your bank account in order to help promote a comfortable lifestyle for Mexican politicians once they have retired and live in France, you think you are done right? Wrong.
It turns out that there is a little-known and never-used (up till now) in the marvelous taxation laws of this advanced democracy that states that besides filing your declaration and paying, you have to (or your accountant has to) LET HACIENDA KNOW THAT YOU HAVE PAID by means of an official letter or notification. Failure to do this will result in a $50,000.00 peso fine! Can you believe this? You pay and they already have your money, but since you didn’t tell them you paid, you automatically get slapped with a fat fine which will presumably cover the cost of Mr. Carstens weekly lunch bill.
This is nothing less than outright highway robbery and a wonderful incentive for investors to come to Mexico to subject themselves to this abuse. Perhaps the Mexican government should consider promoting the country to the International Masochist Businessmens Association, whose members might enjoy this kind of pain.
I am not making this up. I have first-hand knowledge of such a case right now. The accountant alleges that while it is technically his fault because he is supposed to be watching his clients’ back, he prefers to fight the fine legally (with the clients money of course).
Meanwhile, for your enjoyment, look for a photo of Mr. Carstens, Mexico’s Minister of All Things Taxable and believe me as you will see, he needs the money.