SOCIAL RESPONSIBILITY AND TAX PAYMENT IN MEXICO, AN EXPLORATORY STUDY
Synopsis
Regional inequality and differences in available per capita tax revenues today constitute perennial features of Mexican federalism. The economic dynamics led to the emergence of differentiated powers in each region of the country and gave rise to a peculiar political arrangement, marked by the unequal strength of the federal entities. The national system of fiscal coordination (SNCF) does little today to mitigate this picture of inequality, and the establishment of a distributive system for federal revenues, despite alleviating the problem, does not resolve it and leaves the issue open, awaiting policies capable of addressing these structural tax inequalities, not only between states but also among social sectors.
There is abundant evidence of the inequitable tax burden in Mexico; among regions, among states, among economic sectors, and even recently it has been demonstrated that the population in the richest deciles of the country does not make the same tax sacrifice as the population in the deciles that constitute the middle class. Thus, one way to address the inequitable tax collection in Mexico is to advance in the area of citizen fiscal responsibility, not exclusively corporate.
This book contributes to the reflection and construction of an environment of social and even civic responsibility in tax payment in Mexico, finding a correlation by considering that the correct payment of contributions constitutes an indispensable area of social responsibility towards the work carried out by the State. The first chapters are analyses of the various dimensions of corporate social responsibility in Mexico (such as impact on reputation or sustainability). Another contribution establishes the relationship between compliance and corporate social responsibility; a subsequent chapter presents a clear example of civic social responsibility: young people who are creating startups that do fulfill their fiscal responsibilities. In subsequent chapters, various fiscal incentives (to the agricultural sector and extrafiscal ones) are shown, illustrating that some can contribute to responsibility while others violate the principle of tax equity.
The work is enriched with a chapter that demonstrates that small businesses in Mexico do not want to contribute to public spending (that is, a large part of them are socially irresponsible in fiscal terms) and this is illustrated by what has happened in the transition from the Fiscal Incorporation Regime to the Simplified Trust Regime. It is also analyzed that currently there is insufficient government effort to incorporate thousands of businesses and service providers into the formal sector. Another contribution is included in which the inequity is discussed when a person registers with an activity in addition to wages and salaries, thus acquiring the obligation to submit monthly and annual declarations even if no activity related to that regime has been carried out, losing the ease they would have if they were only under the wages and salaries regime of not submitting an annual declaration. The regulation is inequitable, as they would not need to file a declaration, and this contributes to the lack of social responsibility towards the tax authorities. Finally, a comparative study of the fiscal opinion, the auditor, and the fiscal reviewer in Mexico and Colombia is presented; and another that addresses the economic phenomenon of nearshoring in Mexico and its main challenges.
Chapters
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Introduction
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Social responsibility and corporate reputation, analysis from the Mexican stock market sector
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Sustainability Principles of the Institutional Stock Exchange in 2022
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Financial resources, sustainability, and business performance of women-managed companies
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Tax compliance and its effects on social responsibility
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The fiscal formality in startup companies
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Fiscal incentives and their treatment in the Income Tax Law for the agricultural sector
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Feasibility of the application of strict scrutiny in the constitutional review of tax incentives in the northern border region of Mexico
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Comparative analysis regarding the tax efficiency represented by the Simplified Trust Regime compared to the Fiscal Incorporation Regime
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Effect of the activation of professional obligations on the equity and proportionality of salaried individuals
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Comparative Study of the Fiscal Opinion, the Auditor, and the Fiscal Reviewer: Mexico-Colombia
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The economic phenomenon of nearshoring in Mexico and its main effects
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Conclusions
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