ARTICLE 21: UPDATE OF OMITTED CONTRIBUTIONS AND EXPLOITATIONS, IN ADDITION TO THE PAYMENT OF SURCHARGES

When contributions or exploitations are not covered on the date or within the term set by the tax provisions, the amount will be updated from the month in which the payment was due and until it is made, additional charges must be paid as compensation to the federal tax authorities for the lack of late payment. Said surcharges will be calculated by applying to the amount of the contributions or the exploitations updated for the period referred to in this paragraph, the rate that results from adding the applicable ones in each year for each one of the months elapsed in the period of update of the contribution or exploitations in question. The surcharge rate for each one of the months of delinquency will be the result of increasing by 50% to the one established by Law annually the Congress of the Union, for this purpose, the rate will be considered until the hundredth and, where appropriate, will be adjusted to the immediate superior hundredth when the digit of the thousandth is equal to or greater than 5 and when the thousandth is less than 5 the rate will be maintained at the hundredth of the result.

Surcharges will be caused for up to five years, except in the cases referred to in article 67 of this Code (CFF: Art. 67), assumptions in which the surcharges will be caused as long as the faculties of the tax authorities to determine the omitted contributions or exploitations and their accessories are not extinguished, and will be calculated on the total tax credit, excluding the surcharges themselves, the compensation referred to in the seventh paragraph of this article, the execution expenses and the fines for violation of tax provisions.

In the cases of guarantee of fiscal obligations borne by third parties, the surcharges will be caused on the amount of the required and up to the limit of the guaranteed, when it is not paid within the legal term.

When the payment had been less than the corresponding payment, the surcharges will be calculated on the difference.

Surcharges will be caused for each month or fraction that elapses from the day the payment was due and until it is made.

When the surcharges determined by the taxpayer are lower than those calculated by the collection office, the tax office must accept the payment and proceed to demand the remainder.

The check received by the tax authorities that is presented on time and not paid, will result in the payment of the amount of the check and compensation that will always be 20% of the value of the check, and will be required regardless of the other concepts to which is refer in this article. For this purpose, the authority will require the issuer of the check so that, within a period of three days, makes the payment together with the aforementioned 20% compensation, or, evidently certifies, with the corresponding documentary evidence, that the payment was made or that said payment was not made for reasons exclusively attributable to the credit institution. After the term indicated without payment being obtained or any of the aforementioned points is demonstrated, the tax authority will require and collect the amount of the check, the mentioned compensation and the other accessories that apply, through the administrative procedure of execution, without prejudice of the responsibility that may apply.

If authorization is obtained to pay in installments, either deferred or in partial terms, will be caused in addition the surcharges established in article 66 of this Code (CFF: Art. 66), for the deferred part.

In the case of exploitations, the surcharges will be calculated in accordance with the provisions of this article on the total tax credit, excluding the surcharges themselves, the execution expenses and the compensation referred to in this article. Non-tax fines will not cause surcharges.

The tax authorities may totally or partially forgive the surcharges derived from an adjustment to the prices or amounts of consideration in transactions between related parties, provided that said condonation derives from an agreement of the competent authority on the basis of reciprocity, with the authorities of a country with which a treaty has been concluded to avoid double taxation, and said authorities have returned the corresponding tax without the payment of interest amounts.

In no case may the tax authorities may release the taxpayers from the update of contributions or totally or partially forgive the corresponding surcharges.