The Supreme Court confirms the constitutionality of the Beneficiary Controller

Recently, the Second Chamber of the Supreme Court of Justice of the Nation confirmed the constitutionality of the tax provisions related to the identification of the Controlling Beneficiary (CB) in Mexico. These rules seek to comply with international commitments and prevent tax evasion and money laundering.

In Mexico, all legal entities, whether legal entities, trusts or other figures, must identify their CBs. These are the individuals who receive the benefits of the entity or control it. If an entity fails to comply, it can face fines between $500,000.00 and $2,000,000.00 for each unidentified beneficiary.

Identifying CBs can be complex. It requires understanding the entity's structure and gathering sensitive information. In addition, this information must be updated with any changes in the entity's ownership or structure.

This precedent is important because it limits taxpayers' defense against these obligations, which can be difficult to comply with. If you have questions or need more information on how to identify your CB, you can contact us. We are here to help you comply with all your tax obligations.