Mexico goes after tax dodgers with e-bills

To thwart tax dodgers, all transactions in Mexico must now have an electronic bill, says The Economist.

Read: World’s most cost-competitive economy is…

Until April 1, when e-invoices became the rule, there was an entire trade surrounding the manufacturing of fake paper receipts. The country lost $3.4 billion in tax revenue between 2007 and 2009 because of invoicing scams, according to the national tax agency. Now, business has dried up, says one receipt-peddler.

Mexico’s tax system is based on invoices, not bank transaction records, says The Economist. It’s now the first country to mandate electronic receipts for all transactions, not just ones between businesses. The receipts are uploaded almost instantly to the national tax authority.

Read more here.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.