Tax Collection Efficacy Sees Best Quarter in History: SAT

Tax collection efficacy saw its best quarter in 1Q22, with MX$46.33 billion (US$2.32 billion) charged to taxpayers, a 63.8 percent increase compared with 1Q21, when MX$26.36 billion (US$1.32 billion) were collected, informed SAT.

“Although voluntary compliance is preferred over inspections, additional efforts have not been relaxed. Between Jan. and March 2022, 270 Large Taxpayers were audited,” said SAT.

Tax collection efficacy actions are divided in three strategies: a program for compliance with obligations, a program for in-depth surveillance and coercive collection. During 1Q22, the strategies collected US$1.72 billion, US$933.35 million and US$313.85 million, respectively. Coercive collection decreased by 25 percent compared with 1Q21, while the programs for the compliance with obligations and in-depth surveillance increased by 57 percent and 195 percent, respectively.

The program for compliance with obligations aims to make taxpayers comply with their declarations and payments on time, while the program for in-depth surveillance focuses on identifying taxpayers that present atypical variations within their declaration payments, reported El Economista. The coercive collection program promotes the payment of certain debts.

Additional tax collection efforts during 1Q22 brought the treasury MX$139.94 billion (US$7 billion), which is also the best figure for a first quarter in history. Furthermore, it represented a 17.7 percent increase when compared with 1Q21, informed SAT. From the total US$7 billion collected, the largest taxpayers’ contribution amounted to US$2.14 billion.

From the surveyed taxpayers, 81 percent considered that SAT is efficient in its fight against tax evasion. In 2022, “it is observed that the control actions strengthen a culture for better voluntary compliance and self-correction, since tax revenues grew in real terms,” said SAT.

Profitability Increases; Tax Collection Cost Decreases

In 1Q22, for each MX$1 invested in tax collection strategies and actions, SAT retrieved MX$124.8 (US$6.2), only a three-cent increase when compared with 1Q21. “The less pronounced growth between 2021 and 2022 is due to the fact that control actions have managed to modify the payment culture of taxpayers, who have chosen to voluntarily comply with their obligations in a timely manner,” explained SAT.

Tax collection cost decreased 25 cents for every MX$100 collected during 1Q22. This is the lowest cost over the past five years, reported El Economista. “This result was achieved through the use of new technologies, which simplified the processes to serve taxpayers,” said SAT.