Proceeding for Annulment to Appeal a Fiscal Credit.

In our country, we all have the responsibility to contribute to public spending; this duty finds its foundation in Article 31 of the Mexican Political Constitution and turns grants the possibility that said contribution may be returned to us in various ways through security, protection, “free” public services among others.

Notwithstanding the foregoing, it is important to know how the authority calculates these contributions in order to be able to know their essence, its procedures, as well as the powers of the tax authority to determine fiscal credits and, of course, the means of defense to those that can be resorted in case such calculation is wrong. Within the defense means we find the proceeding for annulment.

For this, it is necessary to remember that based on the provisions of article 4 of the Fiscal Code of the Federation, tax credits are:

Those that the State or its decentralized agencies have the right to perceive and come from contributions, their accessories or uses, including those that derive from responsibilities that the State has the right to demand from its officials or employees or individuals, as well as those to which the laws give them that character and the State has the right to receive on behalf of others. Collection from all the revenues of the Federation, even when they are destined for a specific purpose, will be made by the Ministry of Finance and Public Credit or by the offices authorized by said Ministry. For the preceding paragraph, the authorities that remit fiscal credits to the Tax Administration Service for their collection must comply with the requirements established by general rules established by said authority.

As part of the powers conferred by the law to the tax authority, there is the one that it can determine a fiscal credit to be paid by a taxpayer for various reasons. However, the act of authority through which such debt is issued to the federation does not always comply with the legal requirements established by the various tax regulations. By the foregoing, such acts (determination of tax credits) are appealable, that is, they are likely to be controversial before the corresponding control bodies.

Within the many means of defense in these situations, we find the proceeding for annulment.

Contentious Administrative Trial (Proceeding for Annulment).

Federal Administrative Contentious Trial or Proceeding for annulment will be filed before the Federal Court of Administrative Justice.

However, the proceeding for annulment proceeds against:

• The final administrative resolutions established by the Organic Law of the Federal Court of Fiscal and Administrative Justice.

• Administrative acts, decrees, and agreements of a general nature, different from the Regulations, when they are self-applied or when the interested party disputes them along with the first act of application.

In another order of ideas, the proceeding for annulment does not proceed if it is brought against an act that does not affect the interests of the plaintiff, when the act has already been the subject of a judgment pronounced by the Court, when some other mean of defense has already been used, when challenge concepts are not asserted, in the case of resolutions issued by foreign authorities that determine taxes and their accessories, and whose collection has only been requested from the Mexican tax authorities in accordance with the treaties, among others.

In conclusion, we can establish that within the ways of fighting the determination of a tax credit, the Contentious Administrative Trial, also known as the proceeding for annulment, helps greatly to the taxpayer affected by an act of authority.

In another order of ideas, the proceeding for annulment does not proceed if it is brought against an act that does not affect the interests of the plaintiff, when the act has already been the subject of a judgment pronounced by the Court, when some other mean of defense has already been used, when challenge concepts are not asserted, in the case of resolutions issued by foreign authorities that determine taxes and their accessories, and whose collection has only been requested from the Mexican tax authorities in accordance with the treaties, among others.

In conclusion, we can establish that within the ways of fighting the determination of a tax credit, the Contentious Administrative Trial, also known as the proceeding for annulment, helps greatly to the taxpayer affected by an act of authority.

If you have been determined a tax credit as an individual or to your company, we can advise you to deal with that tax burden, Bandala, Díaz, García, has highly trained Professionals for this purpose.