THE TAX AUTHORITIES POWER TO VERIFY. IN THEIR EXERCISE, THEY COULD RIGHTFULLY IGNORE THE TAX EFFECTS OF AN ACT INTENDED TO HAVE LEGAL EFFECTS REGISTER IN THEIR BOOKS, IF THERE IS NO MATERIALITY.- Through the verification powers stated in diverse sections of article 42 of the Federal Tax Code, the legislator intended that in case a taxpayer had to self-determine their taxes, the tax authority could verify the execution of the legal or factual situations the taxpayer used to give them their desired tax effects, using the data, documents and information contributed by the verified and third parties, and also the observation done during the tax visit, because only through this methods there will be complete certainty of the existence of the operations previously described. Now, the basic postulate of the article of financial information A-2 is that the economic substance prevails over the form, in respect to the economic recordable events of a company. In this sense, article 28 of the Federal Tax Code and all the other provisions that regulate the form and terms of the accounting done by a taxpayer, they also come from the same postulate, meaning, that the operations should be recorded when they are real, and in said record the depth or economic substance should prevail over the legal form. Thus, if the authority warns that the operation appears to have no material substance derived from a revision, they can determine the exclusive nonexistence for tax effects, meaning, ignoring the efficiency for the tax determination, return or credit, without implying overriding the general effects of the legal act in question, and by no means exceeding the object of the order of verification.
Administrative Proceeding Num. 4351/16-07-01-4-OT/1124/17-S1-04-04.- Solved by the First Section of the Superior Chamber of the Federal Court of Administrative Justice, in session August 15, 2017, solved unanimous with 5 votes in favor.- Reporting Judge: Rafael Anzures Uribe.- Secretary: Ana María Reyna Ángel. (The thesis was approved in session dated October 5, 2017)
F.C.A.J.J. form the Eighth Era. Year II. No. November 16, 2017. pg. 315