CCN MEXICO REPORT

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Issue #
52
 – 
April 2008

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New Authority for Sub-Delegates of the Mexican Social Security Institute Regarding Labor Risk Premiums Paid by Employers

April 14, 2008

On March 28, 2008, the Mexican Social Security Institute (Instituto Mexicano del Seguro Social or IMSS) published in the OfficialJournal of the Federation, through its Technical Counsel, a decree establishing that in addition to IMSS delegates workingthroughout Mexico, sub-delegates in such offices will have the authority to ratify or amend the category, classification and labor riskpremiums paid by employers for workplace risk insurance paid on behalf of employees. With this reform it is hoped that suchgovernmental transmittals will be made more efficient and less costly for employers.

New Mexican Regulation (NOM) on Maximum Weight and Measures for Trucks and Buses

April 14, 2008

On April 1, 2008 the new Official Mexican Norm (NOM) governing maximum weights and measures for vehicles operating onfederal highways was published in the Official Journal of the Federation (Diario Oficial de la Federación). The purpose of the newregulation is to decrease the maximum weights and measures applicable to vehicles in transit on federal roads and bridges in order toavoid accelerated deterioration and decrease highway accidents. In addition, the regulation seeks to harmonize weights andmeasures applicable in Mexico with those currently in force in Canada and the United States. In publishing the new NOM, theFederal Department of Transportation attempted to negotiate with and arrive at a consensus with all sectors of the Mexican transportation industry and Federal Transportation Chamber; however, since the intent of the NOM is to limit the practice ofoverloading or transporting cargo in equipment exceeding maximum dimensions, substantial opposition was expected. It is possiblethat the Mexican federal government, through the Department of Communications and Transportation (Secretaria deComunicaciones y Transportes or SCT) decided to publish the new NOM without further consultations. The new NOM provides aterm of six months to bring current equipment and practices into compliance with the new requirements. This has resulted in aconflict with the transportation industry, and industry participants have filed a massive amount of amparo protest lawsuits against thenew NOM, which cases will need to be decided by competent Mexican courts.

Recent Court Decision

April 14, 2008

In case 13/2008, the Mexican Supreme Court (Suprema Corte de Justicia de la Nación) has ruled that the effect of an amparo lawsuitdecision declaring any payment made to the government as unconstitutional carries with it the right of the taxpayer to receive theamount originally paid to the government in present value terms. The decision is important for those with amparo lawsuits filedagainst Mexican tax laws, which have been subject to the Financial Code of the Federal District. This opens the door and sets theprecedent for interpreting how compliance with judicial decisions of unconstitutionality should be verified. In its decision, the Courtprovides protection to taxpayers, and states that tax authorities must refrain from collecting the payment in question and return suchpayment in the amount originally made, and also pay to the taxpayer the amount required to take inflation into account, even thoughcurrent tax law does not provide for this.