Mexico's JUFED rejects taxing inherited Afore retirement savings

The National Association of Circuit and District Judges (JUFED) has officially opposed proposals to levy Income Tax (ISR) on Afore retirement funds transferred to beneficiaries of deceased workers. Citing the Supreme Court of Justice of the Nation’s recent ruling that such transfers constitute part of the deceased worker’s patrimony and are therefore exempt from taxation, JUFED argued that the funds are intended to provide economic protection for families after a worker’s death. The association warned that imposing a tax would undermine the purpose of the social security system, directly affect the livelihood of dependents, and exceed the constitutional role of the judiciary, which should not act as a fiscal authority. JUFED emphasized that decisions on taxation belong to the legislative branch, not the courts, and called for upholding equity and legal certainty in the treatment of inherited retirement savings.