There are actions (amparo) pending before the Second Chamber of the Supreme Court of Justice (Segunda Sala de la Suprema Corte de Justicia de la Nación (SCJN)) that are taxpayer challenges to certain provisions of Mexico’s income tax law.
Among the measures at issue are those that limit deductions, for income tax purposes, of certain amounts paid to or on behalf of workers and that bar consideration of inflationary effects on the cost of sales.
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 that 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
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