Mexico’s Supreme Court of Justice (Suprema Corte de Justicia de la Nación) has postponed the hearing of appeals in amparo actions, these being legal actions that challenge the constitutionality of some measures included in the 2014 tax reform. The tax measures that are the subject of legal action include the individual income tax rates, the limitation on certain tax deductions for services, the intention to abolish the small taxpayer regime and the proposed repeal of a lower preferential VAT rate that applies in some areas of Mexico close to the borders.
The legal action in respect of these tax measures will now have to follow the usual procedures in the lower district courts. Once there is a judgment of first instance (sentencia de primera instancia, there is the possibility of an appeal, and the case file and records will be sent by the district judges to the Supreme Court. This will ultimately issue a final judgment on the relevant issues.
