Entrepreneurs criticize new tax agency

Business association leaders, tax experts and other stakeholders remain critical of Baja California’s new Tax Administration Service.

State Entrepreneurial Coordinating Council President Rodrigo Llantada said even though the business sector does not judge or question the nobility of the agency, businessmen are worried that it would become a control tool, as has happened with other policies recently enacted, such as health permits, the Transport Mobility Law, the increase in the Payroll Tax and the penalty in cases of non-compliance.

Currently, the state has audited businesses on water fees, taxes and other matters, but to the same captive taxpayer base, he said.

“In no way do we want to shirk the responsibility, if any,” Llantada said. “What hurts us is the lack of due process and the inability to increase the taxpayer base, since the figures for informal trade recently rose.”

Llantada said the state’s intention to strengthen and organize its tax collection structure was positive. However, he warned state officials from turning the agency into a control tool that would discourage new investment.

Llantada said the Taxpayer Defense Attorney office budget was cut by 75 percent. The agency protects and defends taxpayers who need help.

The business leader described the cut as a severe blow to taxpayers.

“This problem will leave small- and medium-sized businessmen defenseless,” he said. “With the purpose of being equitable, a (taxpayer) defense agency (needs to be) generated at the state level.”

Tax lawyer Adolfo Solís said even though benefits would come with the creation of the new agency, he warned against potential issues like mismanagement of taxpayer identities, harassment and a lack of confidentiality.