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SAT to investigate Mexican taxpayers involved in Paradise Papers

The Tax Administration Service will gather data for the investigation through the application of the tax information exchange agreements

SAT offices in Paseo de la Reforma - Photo: Jorge Serratos/EL UNIVERSAL
06/11/2017 |11:00
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Similarly to what the Mexican Tax Administration Service (SAT) did regarding the Panama Papers , this organization has announced it will investigate, pursuant to the Law, the Mexican taxpayers who have been involved in this new tax evasion case known as the Paradise Papers .

In addition to requesting the support of the Financial Intelligence Unit of the Ministry of the Treasury and Public Credit, the SAT stated it will apply the agreements on tax information exchange.

In a statement released, the Tax Administration Service noted that “the information will be reviewed to evaluate if there are elements which legally constitute tax evasion and that the appropriate Law measures will be enforced, if applicable.”

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In order to gather more data, the SAT will resort to the agreements on tax information exchange which have been entered into by and between several countries.

The Tax Administration Service mentioned that on October 29, 2014, Mexico and 50 other countries signed in Berlin, Germany, the Multilateral Competent Authority Agreement as part of the 7th Plenary Meeting of the Global Forum on Transparency and Exchange of Information for Tax Purposes of the OECD (Organisation for Economic Co-operation and Development).

This agreement, which entered into full force and effect this year, allows the exchange of information through standard versions of investment, transfer, and bank account reports Mexicans and their companies have offshore in more than 80 countries – among them, the nations currently considered “tax havens”.

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