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ARTICLE  146  A:  CANCELLATION  OF  TAX  CREDITS  FOR  UNSUSTAINABLE  OR  INSOLVENCY

The  Secretary  of  Finance  and  Public  Credit  (Secretaría  de  Hacienda  y  Crédito  Público)  may  cancel  tax  credits  in  public  accounts,  due  to  unsustainability  in  the  collection  or  insolvency  of  the  debtor  or  those  responsible  for  solidarities.

Creditable  receivables  are  considered  to  be  those  whose  amount  is  less  than  or  equal  to  the  equivalent  in  national  currency  of  200  investment  units,  those  whose  amount  is  less  than  or  equal  to  the  equivalent  in  national  currency  of  20,000  investment  units  and  whose  recovery  cost  exceeds  75  %  of  the  credit  amount,  as  well  as  those  whose  recovery  cost  is  equal  to  or  greater  than  its  amount.

They  are  considered  insolvency  the  debtors  or  those  responsible  for  solidarities  when  they  do  not  have  seizable  assets  to  cover  the  credit  or  they  have  already  been  made,  when  they  cannot  be  located  or  when  they  have  passed  away  without  leaving  assets  that  may  be  subject  to  the  administrative  execution  procedure.

When  the  debtor  has  two  or  more  credits  under  its  charge,  all  of  them  will  be  added  to  determine  if  the  stated  requirements  are  met.  The  amounts  referred  to  in  the  second  paragraph  of  this  article  shall  be  determined  in  accordance  with  the  applicable  provisions.

The  cancellation  of  the  credits  referred  to  in  this  article  does  not  release  them  from  their  payment.