On June 6, 2013 a new case decision was published in the Judicial Weekly of the Federation (May 2013 - Page 1742) regarding the interpretation of Article 27 of the Mexican Federal Tax Code and Article 25 of its Regulations, which allow legal entities to file a notice of suspension of activities before the Mexican Tax Administration Service (Servicio de Administración Tributaria, SAT), thus ending a pattern which, until such date, had been approved by the tax authority. The title of this case decision is "NOTICE OF SUSPENSION OF ACTIVITIES. SUCH MAY BE FILED BY INDIVIDUALS AND LEGAL ENTITIES (INTERPRETATION IN ACCORDANCE WITH ARTICLE 26, SECTION IV, PARAGRAPH A) OF THE REGULATIONS TO THE MEXICAN FEDERAL TAX CODE, issued by the Collegiate Court on Administrative Matters of the Sixth Circuit, which expressly sets forth the ability of legal entities to file the notice of suspension of activities under the terms of the Mexican Federal Tax Code Regulations in Articles 25, Section V, and 26, Section IV, paragraph a), even though Article 26 refers only to individuals. The purpose of this "notice of suspension of activities" is to allow individuals and legal entities registered with the Federal Taxpayer Registry to inform the SAT that they will cease to conduct commercial activities for which they were previously registered. Prior to the court's decision, legal entities were allowed to file such "notice of suspension of activities" until December 7, 2009, when SAT eliminated this option and took the official position that Article 26 of the above Regulations allowed only individuals to do so. The suspension of activities for legal entities can be a temporary alternative to the dissolution and liquidation of the entity.
