SURETY BONDS as a way to guarantee taxes during the judicial defense

The local market offers options to support a tax litigation with the backing of companies from a foreign country.

It is a daily occurrence that companies operating in Mexico with foreign investment require support from their parent company or corporate headquarters in another country to guarantee a tax trial.

When an authority imposes a penalty or determines that there are tax differences to be paid, the taxpayer company has the right to defend itself.

However, Mexican law provides for the need to guarantee the amount in dispute for the duration of the lawsuit in court, so in order to comply with this provision the authority usually seizes property, bank accounts or sufficient assets (at its discretion), but this situation complicates the commercial operation of the company and is an obstacle that must be dealt with.

Surety policies are presented in this field as a solution that avoids such seizures or freezing of bank accounts and allows the company to continue operating normally while the tax lawsuit is pending.

In Mexico there are Surety Companies owned by famous international firms that can support these issues, even if the taxpayer company does not have solid financial statements or enough to prove solvency in the processing of a bond, being a good solution to coordinate the support from the foreign country where a subsidiary company can provide support.

In REUNE Agente de Seguros y Fianzas, we have enough capacity to assist in these cases, we have the expert personnel and enough relationships to coordinate the support.

Our advice is free of charge, contact us and solve your doubts.

JOEL LOPEZ

Surety VP at REUNE