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Security & Strategic Review - November 2020

MEXICO: Facing accusations of pursuing ‘tax terrorism’

Combating tax evasion is a declared priority for the Mexican government led by President Andrés Manuel López Obrador. Since President López Obrador assumed office in 2018, Mexico’s tax authorities (SAT) have adopted measures designed to identify and go after tax evaders, ranging from publicly naming and shaming suspected tax avoiders to relentlessly pursuing those that have fallen behind in their tax payments. However, the latest raft of measures that the SAT is proposing to use to further crack down on tax evasion starting next year are proving highly controversial and have been denounced as a form of ‘tax terrorism’- the use of extra legal pressure by the authorities on individuals to secure the payment of taxes.

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