Based on this new ruling, taxpayers may not be granted injunctions against the requirement to maintain electronic accounting records. Therefore, they should ensure that they comply with the applicable accounting records rules.

On May 6, 2016, the First Chamber of the Supreme Court of Justice ruled (41/2016) that the injunction requested by a taxpayer should be rejected in amparo proceedings challenging Section III of Article 28 of the Federal Fiscal Code, which requires taxpayers to maintain electronic accounting records.

Background

As part of the 2014 tax reform, taxpayers must maintain electronic accounting records and electronically file some of them on a monthly basis. Several companies challenged the constitutionality of the accounting record filing and have asked the courts to rule on the requirement's constitutionality in amparo trials. Taxpayers have also asked the courts to grant an injunction of the obligation to file the accounting records until final decisions are issued.

In December 2014, the Second Chamber of the Supreme Court of Justice granted a temporary injunction requested by taxpayers challenging, in amparo trials, the obligation to file, rather than store, the electronic accounting records on a monthly basis. (See Tax Alert 2014-2135.)

Implications

This new ruling does not affect the temporary injunctions previously granted, which permit taxpayers not to comply with the obligation to electronically file the accounting records while the amparo trial concludes. It also does not affect the injunctions that have already been granted and constitutes a final decision. The new ruling, however, will affect the pending amparo proceedings, which means the courts will not grant injunctions against the requirement to maintain electronic accounting records.

Accordingly, taxpayers should ensure that they comply with the applicable accounting records rules, including maintaining electronic accounting records.

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