The Third Collegiate Court in Administrative Matters of the Sixth Circuit ruled that the five-year statute of limitations established under Article 67 of the Federal Tax Code (Código Fiscal de la Federación, CFF) does not apply to the initiation of proceedings under Article 69-B of the CFF.

This procedure allows the tax authorities to presume that certain transactions supported by digital tax receipts issued online (Comprobantes Fiscales Digitales por Internet, CFDIs) did not take place. This may occur, for example, when the issuer lacks the material resources or operational capacity to provide the services or deliver the goods invoiced.

According to the Court, the purpose of this procedure is to verify the authenticity of transactions and the operational capacity of CFDI issuers. Therefore, the initiation of such proceedings does not, in itself, constitute the exercise of audit powers to determine unpaid taxes or impose penalties.

In practical terms, the passage of five years does not, by itself, prevent the tax authorities from initiating proceedings under Article 69-B of the CFF.

How Could This Affect Companies?

This ruling is relevant both to companies issuing CFDIs and to those receiving invoices from their suppliers.

• Companies issuing CFDIs: They may be subject to proceedings under Article 69-B even after more than five years have elapsed, as they cannot rely solely on the statute of limitations under Article 67 to prevent the initiation of such proceedings.
• Companies receiving CFDIs: Companies that have conducted transactions with suppliers subject to these proceedings may face tax audits and contingencies concerning the eligibility of their deductions and the creditability of input VAT, in accordance with the applicable provisions.
• Substantiation of transactions: Maintaining sufficient evidence will be essential to demonstrate that goods were actually acquired or services were effectively rendered, as well as to substantiate the suppliers' operational capacity.

What Should Companies Do?

To mitigate tax risks, we recommend implementing the following measures:

1. Maintain supporting documentation substantiating transactions. Retain contracts, purchase orders, deliverables, evidence of receipt of goods or services, payment records, and commercial correspondence demonstrating that the transactions were actually carried out.
2. Review suppliers. Periodically verify their tax status, operational capacity, and any potential red flags related to Article 69-B of the CFF.
3. Identify higher-risk transactions. Pay particular attention to transactions lacking sufficient documentation or whose supporting records do not clearly demonstrate the acquisition of goods or the provision of services.
4. Address potential tax contingencies promptly. If a supplier becomes subject to these proceedings, assess the potential tax implications and determine the appropriate course of action, taking into account the deadlines applicable to each stage of the procedure.

Final Considerations

This ruling reinforces the importance of maintaining preventive tax controls and documentation substantiating the materiality of transactions.

It is important to distinguish between the time limit for initiating proceedings under Article 69-B of the CFF and the statutes of limitations applicable to the exercise of other tax authorities' powers. The ruling does not, in itself, eliminate the time limits applicable to subsequent audit and verification powers.

Accordingly, companies should ensure that their transactions are properly documented and that their records demonstrate that the transactions were actually carried out, without assuming that the passage of five years eliminates the risk of being subject to proceedings under Article 69-B of the CFF.

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If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.