Rule of Law, Transparency Needed for Greater Economic Development

Q: Junquera y Forcada specializes in legal accounting. How does the firm provide an added value in its core business?

A: While I participate more in litigation, the firm has a greater participation in the corporate and litigation niches. Junquera y Forcada has developed a new division that helps companies prevent legal problems. We are one of the few firms that offer this service, making it a key added value. We created this new section because we believe that any evolving society must have a philosophy to not only solve the problems that already exist but to avoid them altogether so it can continue to prosper.
Prevention must be a high priority for all companies. Law firms like Junquera y Forcada can guide them in implementing this philosophy. Junquera y Forcada focuses on providing legal assistance related to the prevention of problems through the revision of contracts, services, hiring and any other key business matter. The firm helps companies analyze and minimize their risks, allowing them to anticipate future problems with greater certainty and effectiveness. 

Q: In your experience, in which areas do companies usually face the most problems? How does Junquera y Forcada assist them?

A: Two of the country’s biggest problems are the bureaucratic processes applied to receiving foreign investment and the fear that derives from the lack of rule of law. In the public sector, the Chambers of Deputies and Senators seem interested in strengthening rule of law in Mexico. However, at this moment there is a power struggle in both houses and there are changes in the distribution of power. This is a natural process that always happens in any country when there is a change in government. Junquera y Forcada’s vision is to provide solid legal support to its clients so that we can help them prepare for these times of change.

Q: What would you say are the most complex challenges the country will face in the short, medium and long terms?

A: Change always generates public concern. The breakdown of the old system happened due to an excess of corruption that gave way to the formation of a new political philosophy in the country. 

The new government should focus not only on fulfilling campaign promises but analyze what initiatives are appropriate or not for the welfare of the country. For example, NAIM’s cancellation is disappointing because the new administration did not make a thorough analysis and used the airport as a pawn in the rivalry among political parties. Also, the political decree to lower the income of public officials so that they do not earn more than the president is a mistake.  

Q: The new US tax plan has generated a discussion regarding Mexico’s fiscal competitiveness. What approach should the AMLO administration take?

A: As a member of the Mexican Academy of Tax Law, I believe the new administration should focus on collecting taxes from consumer spending. If all the operations that generate consumption become tax deductible, a systematic spending cross is generated. The government would then be able to collect a percentage of all the transactions that are made from purchases of any kind, from tortillas to airplanes, a house or a building. It is an effective way to expand the revenue base. 
Junquera y Forcada has done studies on the amount that is crossed in the Courts of Justice of Mexico City related to commercial operations that are completed by means of a judicial resolution. We found that taxes are not paid on these. There is more than MX$10 billion (US$520 million) that could be taxed each year but it is not being done, not in Mexico City or in any other city. What the new government must do is collect taxes and collect them well to have greater liquidity, in addition to being very selective in spending. The government should not be devoted to saving money just to save it but to allocate it effectively to the areas that can generate a benefit for the country.