We are pleased to share the article Cahiers - International Tax Law: Sharing and Shifting of Corporate Losses – The New Profit Shifting? written by our partner Samy Lazarov, who, in collaboration with Carlos Pérez-Gómez Serrano, contributed to Volume 107.
This article discusses the challenges of tax loss commoditization and loss-shifting in Mexico, both by taxpayers and by the tax authorities. It reviews the historical and legal background of the issue, as well as the impact of the COVID-19 crisis on corporate losses. It argues that the tax authorities should balance the need to prevent abuse with the need to provide relief for genuine economic losses, otherwise, they may worsen the economic situation of the country.
