tax Defenses

by Daniel Ruiz de la Peña Sandoval, Attorney at Law

Once a taxpayer has been served a SAT determination (resolution), the taxpayer can submit an administrative appeal or a lawsuit against said determination.  The difference between both legal defenses are explained in this article.


In accordance with the Federal Tax Code, a taxpayer can submit a lawsuit before the legal department of the same authority that had issued the determination, which must be resolved within 3 mouths.

One of the benefits of submitting an administrative appeal is that during the timeframe between submitting the appeal and issuing the final determination, the taxpayer shall not warranty the tax debt.

Plus, new evidence can be submitted by the taxpayer that was not previously available during the tax audit done by the Tax Authority.
But, one of the negative aspects of an administrative appeal is that will take longer if the determination is determined in favor of the  negative aspects and if legal department of the tax authority is not fair-minded.


On other hand, the taxpayer can submit a lawsuit directly before the tax authority against the tax determination or against the administrative appeal resolution. This tax defense that has the following positive and negatives aspects:

The Tax Court is more open-minded than the legal department of the Tax Authority.

During the tax lawsuit, the taxpayer shall warrant the tax debt during the process, in case that is not duly warranted the tax authority could seizure assets and banks account. But if the tax debt is for 5,000,000.00 pesos or more, the trial can be submitted by oral testimony, (All the trial in Mexico used to be in writing), during this type of trial, the tax debt does not need to be warranted.

If a taxpayer submits the lawsuit against the tax determination, it will save time, due to the fact that it saves any potential lost time that would occur in the administrative appeal process.


If during the process of the lawsuit or administrative appeal the tax debt is not duly warranted, the Tax authority can suspend the import permit or its tax benefits, like the machinery imports benefits or VAT certification benefits, but the company can submit a tax lawsuit without any such suspension if the tax debt it is duly warranted.


It is important to hire a Tax Lawyer during the audit in order to review the mistakes of the authority that would help as legal arguments in the legal defense.

If you have any doubt or question about do not hesitate to contact us.

By  Lic. Daniel Ruiz de la Peña Sandoval of Ruiz de la Peña y Asociados, S.C., Tijuana, BC, Officina 664-684-0287,