69-B list

Article 69-B of the Federal Tax Code lets SAT presume non-existent the operations of a taxpayer who issues receipts without the assets, staff, infrastructure or material capacity to provide the services or deliver the goods invoiced, or who cannot be located. These taxpayers are known as EFOS (companies invoicing simulated operations).

The stages

1. Presumed. SAT notifies them and publishes them in the Official Gazette (DOF) and on its site. The taxpayer has 15 days to disprove it (plus a single 5-day extension).
2. Definitive. If they don’t, SAT publishes them as definitive. From then on, the operations in their receipts have and had no tax effect at all.
3. Disproved or favorable ruling. SAT also publishes, quarterly, those who disproved the facts or won a legal challenge.

If you bought from one

If you gave tax effect to invoices from a supplier published as definitive, you have 30 days after the publication to prove to SAT that you really received the goods or services, or to correct your position with amended returns. That’s why it pays to check suppliers before paying them and as soon as they appear.

Separate from it is the article 69 list: taxpayers not located, with firm tax debts, among other cases.