Fiscal Matters
SAT Information Report for fiscal year 2007
Industry representatives met several times with SAT officials and coordinated the task of submitting information on interest paid and shares bought and sold in fiscal year 2007. This in compliance with the "Procedural Manual for the Delivery, Receipt and Handling of Information Generated by Financial Industry Institutions pursuant to Articles 59 and 60 of the New Income Tax Law". They also participated in the process of defining delivery formats and validation routines or filters.
Submission of Financial Information to the Tax Administration System
The SAT granted an extension for the delivery of informational reports on wages, salaries and benefits, and clients and vendors, as well as procedures for calculation of provisional assets tax payments for fiscal year 2007.
The Miscellaneous Resolution of July contained rules for financial institutions on the submission of information to the SAT for fiscal year 2007, on interest income they paid on the sale of their clients' shares.
In 2007, the authorities also supplied us with the documents for submitting information on interest and trusts:
- Technical instructions on generating information on interest and share transfers in the period from January 1 to December 31, 2007.
- Procedural manual for the delivery, receipt and handling of information generated by financial industry institutions, fiscal year 2007.
- Technical instructions on generating trust information for the period from July 1 to December 31, 2007.
- Procedural manual for the delivery, receipt and handling of trust information for the period from July 1 to December 31, 2007.
- Important rules for the industry regarding repo and securities lending transactions
- Ratification that the real amount of interest must be calculated using the daily NCPI, not the UDI, as was partially allowed the previous year.
- Authorization for a global account manager to withhold income tax on interest income or gains from equity or debt derivatives, issuing the appropriate tax forms.
- Amnesty until it is confirmed whether or not income and assets tax forgiveness is accruable at the time of its application.
- A tax amnesty program that forgives penalties and back interest due to errors and omissions in the performance of federal tax obligations.
Information the SAT must supply to trust institutions
On January 30, the Official Gazette of the Federation published the Twelfth Resolution Modifications to the Miscellaneous Tax Rules for 2006 and attachment 5, which gave trust institutions an extension until February 2008 to present information on the trusts in which they participate. The provision reads as follows:
"2.20.10. For the purposes of Article Two, section IV of the Decree to reform, add, repeal and establish various provisions of the Tax Code of the Federation, the Income Tax Law, the Value-Added Tax Law and the Law on the Special Tax on Production and Services, published in the Official Gazette of the Federation on June 28, 2006, the obligation to present the trust information referred to in that transitory provision will be considered fulfilled if the information mentioned in article 32-B, section VII of the Tax Code of the Federation, with respect to the previous fiscal year, is submitted in the month of February 2008."
After a year of intensive negotiations, the ABM and AMIB were able to specify the scope of those provisions by limiting many points. The SAT sent AMIB a document that was received on January 9, explaining that real estate management trusts, pension funds, "autofinanciamiento" trusts (mutualized loan schemes), scholarship plans and special savings plan, among other arrangements, were exempt from compliance with the trust information provisions. It also mentioned that the document applied only to trusts that earned revenues from business activities.
The SAT deadline for submitting information on trusts that earn revenues from business activities is February 15, 2008, and institutions can add more information later by presenting a complementary statement.
Other key fiscal matters
In 2007, various fiscal measures were issued on the subject of the taxability of financial instruments and brokerage firms' duties in tax matters. Some of the most important of these were:
AMIB presented the tax authorities with various documents, including one on multi-series funds and account statements as tax certificates for their clients.
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