Mexico: Automation of tax compliance

A report discussing the growing automation of tax compliance

A report discussing the growing automation of tax compliance

The KPMG member firm in Mexico prepared a report discussing the growing automation of tax compliance and the associated challenges and potential benefits. 

The report notes that the tax framework in Mexico has not changed fundamentally, but tax compliance has been transformed—with significantly larger amounts of data and documentation, as well as digital support. Situations that could previously be resolved through a conceptual analysis with a limited number of documents now require full support, including tax traceability. The accounting records and documentary evidence of operations now must be perfectly connected, and the submission of information for compliance has become digital. Organizations must manage high volumes of data, requiring technology that supports the various phases of the financial, accounting and tax processes.

The agility provided by automation makes it easier to observe the deadlines for tax compliance, to present complete information in a timely manner, to make any additional necessary clarifications, and to prepare reports for planning and decision making. Technology also makes it possible to generate more timely cash flow through credit balances, since it is possible to demonstrate the entire cycle of operations. 

KPMG observation

It is critical for taxpayers to find tools that take into account the local context, industry, and company needs. The tools also must be easy to use so that the tax function and the company as a whole can understand, manage, and take advantage of the information. The right platforms have positive repercussions not only in the tax function, but also in accounting, finance, and treasury.

The best available technologies have the power to extract, transform, and load data for automated processes without human intervention, and to manage and take advantage of data in the creation of reports and in any other environment. In addition, the best solutions are not only about technology, but also incorporate a comprehensive strategy that takes into account the participation of people.

Read a June 2022 report (Spanish) prepared by the KPMG member firm in Mexico

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.