The Resource Mexico's controversy with expenses involving operating and services companies

Mexico's controversy with expenses involving operating and services companies

Label
Mexico's controversy with expenses involving operating and services companies
Title
Mexico's controversy with expenses involving operating and services companies
Creator
Subject
Language
eng
Summary
It has been common practice for a number of years for a Mexican corporate group to set up separate services companies to hold its employees and provide personal services to other companies in the group. While such structures are a legitimate way to manage the mandatory profit sharing obligation, they have been the subject of abuse, with the result that the Mexican tax authorities now challenge all structures using a services company. The government recently has taken steps to crack down on the use of payroll tax planning structures that are focused on avoiding the payment of income tax and social security contributions. Unfortunately, legitimate services company structures have been caught up in this initiative. Taxpayers are faced with the alternative of modifying a practice that seems to be anchored in a sound legal defense in order to avoid litigation, or staying the course and accepting a tax assessment and a potential two to four-year litigation process that may or may not yield favourable results
Citation source
In: Tax management international journal. - Arlington. - Vol. 41 (2012),
http://library.link/vocab/creatorName
  • González Orta, R
  • Martínez D'Meza, M
  • Vega, H
Geographic coverage
  • Central America
  • Latin America
Language note
English
http://library.link/vocab/subjectName
  • service company
  • dispute resolution
Label
Mexico's controversy with expenses involving operating and services companies
Instantiates
Publication
Label
Mexico's controversy with expenses involving operating and services companies
Publication

Library Locations

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      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
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