The Second Chamber of the Supreme Court of Justice (Suprema Corte de Justicia de la Nación—SCJN)) in October 2016 issued judgments resolving actions (amparo) brought by taxpayers challenging various provisions of the 2014 Tax Reform—specifically provisions under the income tax law and the special tax on production and services.
The Second Chamber concluded that the maximum income tax rate of 35% as imposed on individual taxpayers was constitutional. Other constitutional challenges concerned:
Under Mexico’s legal system, decisions declaring a tax law as “unconstitutional” do not have the effect of invalidating the measure. Rather, the reach of the court’s injunctive relief—amparo—is limited to those taxpayers who petitioned the court and obtained a favorable ruling. All other taxpayers must comply with the law as written—even though the law may be unconstitutional—until each taxpayer obtains an amparo and invokes the protection of the federal courts.
Read an October 2016 report (Spanish) prepared by the KPMG member firm in Mexico: SCJN resuelve amparos de Reforma Fiscal 2014
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