Companies required to audit their financial statements through an authorized public accountant should keep in mindthat, in conformity with the new provisions established in Article 32-A, Section I of the Federal Fiscal Code (CódigoFiscal de la Federación) in certain circumstances taxpayers are now allowed to opt out of the obligation of havingaudited financial records. Certain taxpayers may elect not to have their financial statements audited, so long as theymake such election on their annual Mexican Income Tax (ISR) return for the fiscal year such election applies. Theoption must be exercised within the time period established in Mexican law for filing annual ISR returns. In addition,taxpayers electing not to have their financial statements audited are obligated to file, during June, 2011, via theInternet, the information contained in Annex 21 “Alternative information to audit” (“Información alternativa aldictamen 2) in correct form. Such Annex was published in the Official Journal of the Federation on December 17,2010. If taxpayers fail to make the election within the time period mentioned or do not complete filing of theinformation referred to above, such taxpayers will be obligated to have their financial statements audited for taxpurposes in accordance with applicable Mexican tax law. This option does not apply, among others, to legal entities authorized to receive donations, those merging or spinning off, those in liquidation or to be liquidated and those thathave opted to voluntarily dictaminate their financial statements.
