Learn 8 basic points about tax discrepancies in individuals.

1. Tax discrepancy:

The article provides that natural persons may be subject to a tax discrepancy procedure when it is detected that the amount of the expenditures in one year exceeds the income they have declared or should have declared. The expenditures include:

• Bills.
• Acquisition of goods.
• Deposits in bank accounts.
• Financial investments.
• Credit cards.

This means that if a natural person, for example, has a lifestyle, a level of expenses, or makes investments that do not seem to correspond to their declared income, the SAT can initiate a review to assess whether there is undeclared or underdeclared income.

2. Presumption of taxable income:

The article establishes that, if the expenditures are not duly justified, presumed as taxable income. This becomes especially relevant for those who:

• They are not registered in the RFC.
• They are registered, but do not file the required returns.
• They declare income lower than the expenses detected.

For example, if a person has significant bank deposits or purchases expensive goods without having declared income to justify those purchases, those expenses will be treated as if they came from undeclared income, and the corresponding tax will be applied to them.

3. Exclusions to the presumption of taxable income:

The article also provides for some important exceptions. The following deposits will not be considered as expenditures:

• Deposits in accounts that do not belong to the taxpayer.
• Deposits for the acquisition of goods or services, or for the granting of the use or enjoyment of goods.
• Transfers between own accounts or to accounts of close relatives (spouse, ascendants or descendants in a direct line).

These cases will not be considered taxable income, as long as the taxpayer can prove its nature. This provides some flexibility, but it is up to the taxpayer to provide the relevant evidence.

4. Determination of omitted income:

The Unexplained income Derived from this procedure will be considered as omitted income. This implies that:

• If the taxpayer does not justify the origin of the resources used in the detected expenditures, it is presumed that these resources come from taxable income.
• These omitted income will be classified according to the predominant activity of the taxpayer, or, as other income, as appropriate.

In addition, if the taxpayer is not registered in the RFC, the tax authorities will register it in the Chapter II, Section I of Title IV, which regulates income from business and professional activities.

5. Powers of the tax authorities:

To determine the amount of the disbursements, the SAT may use any information in your possession, including:

• Internal files and databases.
• Information provided by third parties (such as banks, companies, or other institutions).

This provision grants a broad faculty to the tax authorities to collect and use information on the taxpayer's financial transactions.

6. Procedure for the taxpayer:

The article specifies a procedure that grants certain rights to the taxpayer:

• Tax authorities must formally notify the taxpayer the amount of the expenditures detected, the information used and the resulting discrepancy.
• The taxpayer has a period of 20 days to respond and clarify the source of the resources used in the expenditures, presenting the necessary evidence.
• If the clarification is not sufficient, the unjustified expenditures will be presumed to be taxable income and the tax will be assessed. settlement of the corresponding taxes.

This process guarantees the taxpayer the opportunity to fend and provide evidence before tax authorities conclude that there was unreported income.

7. Conclusion of the procedure:

If, after the analysis, it is determined that there was indeed omitted income, the tax authorities will issue a settlement based on the rate of article 152 of the Income Tax Law, which establishes the percentages applicable to individuals to calculate the ISR on annual income.

8. Practical implications:

This article is a crucial tool for the SAT to detect inconsistencies between the declared income and the lifestyle or expenses of individuals. Promotes transparency in tax returns, discouraging taxpayers from underreporting income or failing to comply with their tax obligations. At the same time, it establishes a formal defense process for those taxpayers who can justify the origin of the resources used.

The tax discrepancy procedure It is particularly relevant in cases where there is a lack of obvious correspondence between income and expenditure (as in tax evasion situations), but it can also cause concern among honest taxpayers who do not keep strict control of their personal finances.

In short, Article 91 is a powerful tool for the SAT to combat tax evasion, but it also implies the need for taxpayers to keep a detailed record of their expenses and income, especially when they make significant or atypical expenditures.