He Tax Administration Service (SAT) may initiate a procedure tax discrepancy against individuals whose expenditures in a year exceed their declared income or what they should have declared, according to article 91 of the Income Tax Law (ISR).
This process begins when SAT detects a discrepancy between income and expenses and notifies the taxpayer, who then has 20 days to respond and justify the differences.
The notification document includes the amount of expenditure detectedthe information used to identify the discrepancy, the means by which such information was obtained, and how the discrepancy was determined.
Not only direct expenses are considered expenditures, but also purchases of goods, deposits in bank and investment accounts, and payments made with credit cards.
To avoid falling into this situation, it is very important that taxpayers carefully manage their personal finances and maintain a detailed record of all your financial transactions.
Control of finances is essential, especially with regard to donations to relatives and loans, which are common causes of discrepancies because they may represent more expenses than recorded income.
Taxpayers must ensure that all pre-filled information on their annual statement be accurate and report any additional income such as loans, prizes or donations that they receive throughout the year.
According to the law, Prizes or loans must be declared which together exceed 600 thousand pesos, or 500 thousand pesos if considered together with the salary.
In addition, it is essential to have on hand all necessary receipts for any clarification with the SAT. This precaution is vital to avoid complications and possible penalties during the annual declaration process.
Proper management and documentation of financial transactions and movements are the best strategies for prevent problems with the tax authority and ensure compliance with tax obligations.
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