When there is a final decision, taxpayers should review the decision to determine how constitutional (i.e., amparo) protection might affect them.

On June 29, 2016, Mexico's Second Chamber of the Supreme Court of Justice will rule on the constitutionality of the obligation to maintain electronic accounting records and to file accounting-related information through the electronic tax drop box as required by Mexico's 2014 tax reform (see Tax Alert 2014-1239 {LINK}).

Based on a draft of the Court's decision, the Court appears to be leaning towards requiring companies to keep accounting records electronically, carry out procedures (e.g., filing tax refunds) and receive notifications through the electronic tax drop box (i.e., it would deny the amparo protection on these issues). The Court decision would not, however, require companies to convert the accounting files to XML format because the technical guidelines to carry out this conversion generate legal uncertainty (i.e., it would grant the amparo protection on this issue).

Additionally, the draft decision would grant the amparo protection to preliminary tax assessments. Specifically, taxpayers would have 15 days from the date of notification to provide evidence that refutes the tax authorities' findings or to pay the assessed taxes.

The draft decision is not final and is still subject to discussion and approval of the five members of the Second Chamber of the Supreme Court of Justice. If the draft decision is approved as currently written, it will be important to analyze the effect of granting the amparo protection in each case.

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