SAT intensifies crackdown on tax evasion and fraudulent invoices in Mexico

The Mexican Tax Administration Service (SAT) is intensifying efforts to combat tax evasion and the use of fraudulent invoices. Antonio Martínez Dagnino, head of the agency, reported that the Economic Package submitted to Congress includes strict controls on deductions and fiscal losses, drawing on international best practices from the OECD, the United States, and the European Union.

Investigations have revealed that companies seeking to minimize Income Tax (ISR) payments or report fiscal losses use allegedly false invoices for up to 10% of their expenses. Between October 2024 and August 2026, the SAT blocked over 38,000 companies involved in fictitious operations, published more than 3,000 fraudulent entities in the Official Gazette of the Federation, and conducted nearly 2,000 audits.

Furthermore, the agency noted that 129,000 companies have declared losses over the last three fiscal years, and 54,000 have gone five consecutive years without paying taxes despite reporting increased income. Proposed measures include improving the traceability of fuel supplies, such as gasoline and diesel, and implementing new mechanisms to control corporate deductions and losses without increasing existing tax rates.