What the federal government proposes with this reform to Article 151 of the Income Tax Law (ISR) is to make an equalization of tax evasion with tax incentives and also the legal change is contrary to international best practices, said Lucía Hidalgo, director of the Alternativas y Capacities association.
“Both the United Nations High Commissioner for Human Rights and the National Human Rights Commission recommend that the government give tax incentives for the right of association,” said Hidalgo.
He explained that in Mexico there are 2,000 Civil Society Organizations (CSOs) that do depend between 30 and 100% on individual donations and 5,100 are those that can receive individual donations.
“We will not equate tax evasion with tax incentives because they do not make any sense (…) Civil organizations have already filled out a special transparency report, we already have many measures that regulate how and what we are spending on,” he said in an interview for El Economist.
Not allowing the deductibility of donations does not contribute to strengthening philanthropy and is therefore contrary to best practices.
He went on to explain that with this tax measure CSOs are being equated with billing companies when “they have nothing to do with it, since we already comply with other requirements that they request.”
Meanwhile, Sofía Calvert, former president of the Canacintra Foundation, explained that the reform of Article 151 of the ISR Law would affect 5,000 CSOs and, most importantly, the population they serve, ranging from children to the elderly.
“It is an infinity of people who are cared for by these foundations, it is estimated that 8,000 million pesos can be lost, which in our opinion, the problem is not in these institutions,” he commented in an interview.
In this sense, he explained that if the problem is in the abuses that the law be applied to the natural persons who committed these infractions and that due process is followed so that the rule of law is maintained.
To what was said by Raquel Buenrostro, head of the Tax Administration Service (SAT), who argued that it is easier to change the rule in general than to audit one by one of the people involved, the interviewee commented that the law has to be applied like this be it “easy or difficult”.
At the same time, Mayté Cárdenas from UNIDOS Somos Iguales AC, revealed that in the face of the pandemic, donations have fallen and with the approval of the reform the situation would further complicate the situation since 23% of their income comes from individuals, if it is reduced this percentage (7%) will have to cut staff and serve fewer people.
They await full analysis
Senators have until October 31 to approve the Federal Revenue Law and the Fiscal Miscellany for next year, therefore, they still hope that legislators will analyze the situation of the entire vulnerable population that they are going to leave unattended. .
“This affects the entire population that will be left in a state of vulnerability or that will not have the support of CSOs. It is time to raise your voice and pay attention to this kind of thing, ”said Sofía Calvert.
For his part, José Trinidad from the Council of Civil Society Organizations of the State of Mexico, which represents 420 CSOs, aligned with the United Nations 2030 Agenda, commented that, if the changes in the rule are confirmed, the donor will prefer to deduct your personal expenses such as: medical, dental, funeral or tuition expenses to choose to donate to civil organizations.