Mexico Supreme Court restricts invoicing rights for suspected tax fraudsters

The Supreme Court of Justice of the Nation (SCJN) has ruled that taxpayers investigated for potential false invoicing cannot obtain a provisional suspension to continue issuing electronic invoices (CFDI) while their cases are being resolved. This decision prevents those suspected of backing non-existent operations from maintaining commercial activity through temporary judicial relief.

Separately, legal experts have noted that recent reforms have broadened the parameters for the Financial Intelligence Unit (UIF) to freeze bank accounts. This has led to an increase in companies facing sudden account freezes without clear justification, potentially causing 'mercantile death' by paralyzing operations, payments to suppliers, and employee salaries.

To mitigate these risks, experts recommend that companies maintain detailed transaction records and robust client files to support legal defenses. In the event of a freeze, available legal remedies include a review resource before the Treasury, a nullity trial, or an amparo. Legal specialists suggest that a nullity trial may be more effective for restoring operational capacity during the clarification process.