Mexico Scrutinizes Multinationals for Tax Evasion Alexandra Alper - Reuters
go to original January 16, 2014

With cardboard cats and live dogs, some wearing balloons with a message that reads in Spanish: "No to the Value Added Tax on our food," protesters stand at the entrance to the finance ministry in Mexico City.  The protest was organized by several organizations that run shelters for animals rescued from the streets. (Associated Press)

MEXICO CITY - Mexico has identified about 270 multinational companies that may be using aggressive tax planning to shirk their fiscal responsibilities in Latin America's No. 2 economy, the head of the country's tax collection office said on Wednesday.

Mexico, which passed a reform aimed at boosting the tax take last year, has the weakest tax revenues in the 34-nation Organization for Economic Co-operation and Development (OECD), due to both evasion and a small tax base.

The reform, which imposes new taxes on the wealthy and levies on junk food and sugary beverages, is forecast to boost government revenue by more than 1 percent of gross domestic product this year and by more than 2.5 percent of GDP by 2018.

Authorities are also stepping up enforcement of existing tax rules, with new scrutiny on multinational companies.

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