ARTICLE 69 B: NOTIFICATION OF THE PRESUMPTION OF NON-EXISTENCE OPERATIONS COVERED IN RECEIPTS

When the tax authority detects that a taxpayer has been issuing receipts without having the assets, personnel, infrastructure or material capacity, directly or indirectly, to provide the services or produce, market or deliver the goods that cover such receipts, or that such taxpayers are not located, non-existence operations covered in such receipts will be presumed.

In this case, it will proceed to notify the taxpayers who are in said situation through their tax mailbox, from the website of the Service Tax Administration (Servicio de Administración Tributaria), as well as through publication in the Official Journal of the Federation (Diario Oficial de la Federación), in order for those taxpayers to declare before the tax authority what their right suits and provide the documentation and information they deem pertinent to distort the facts that led the authority to notify them. For this, the interested taxpayers will have a period of fifteen days from the last of the notifications that have been made.

Taxpayers may request, through the tax mailbox, for a single occasion, an extension of five days to the period provided in the preceding paragraph, to provide the respective documentation and information, provided that the request for extension is made within that period. The extension requested in these terms shall be deemed granted without the need for a ruling by the authority and shall begin to be computed as of the day following the expiration of the period provided in the preceding paragraph.

After the deadline to provide documentation and information and, where appropriate, the extension, the authority, within a period not exceeding fifty days, will assess the evidence and defenses that have been enforced and notify its resolution to the taxpayers respective through the tax mailbox. Within the first twenty days of this period, the authority may request additional documentation and information from the taxpayer, which must be provided within ten days after the notification of the tax mailbox requirement takes effect. In this case, the aforementioned fifty-day period shall be suspended as of the notification of the requirement taking effect and shall resume the day following the expiration of said ten-day period. Likewise, a list will be published in the Official Journal of the Federation (Diario Oficial de la Federación) and on the website of the Service Tax Administration (Servicio de Administración Tributaria), of taxpayers who have not distorted the facts attributed to them and, therefore, are definitely in the situation referred to in the first paragraph of this article. In no case will this list be published before thirty days after notification of the resolution.

The effects of the publication of this list will be to consider, with general effects, that the operations contained in the tax receipts issued by the taxpayer in question do not produce or produced any fiscal effect.

The tax authority will also publish in the Official Journal of the Federation (Diario Oficial de la Federación) and on the website of the Service Tax Administration (Servicio de Administración Tributaria), quarterly, a list of those taxpayers who manage to distort the facts that are imputed to them, as well as those that obtained resolution or sentence firm that have left without effect the resolution referred to in the fourth paragraph of this article, derived from the means of defense presented by the taxpayer.

If the authority does not notify the corresponding resolution, within a period of fifty days, the presumption regarding the tax receipts observed, which gave rise to the procedure, will be without effect.

Individuals or legal entities that have given any fiscal effect to the tax receipts issued by a taxpayer included in the list referred to in the fourth paragraph of this article, shall have thirty days following that of said publication to accredit before the authority itself , who actually acquired the goods or received the services that cover the aforementioned tax receipts, or will proceed within the same period to correct their fiscal situation, by means of the corresponding declaration or complementary declarations, which they must submit in terms of this Code.

In the event that the tax authority, in use of their faculties of verification, detects that an individual or legal entity did not accredit the effective provision of the service or acquisition of the goods, or did not correct their fiscal situation, in the terms provided by the paragraph above, it will determine the corresponding tax credit (s). Likewise, the operations covered by the aforementioned tax receipts will be considered as simulated acts or contracts for the purposes of the crimes provided for in this Code.