Basham, Ringe y Correa, S.C.
  February 1, 2006 - Mexico

Gasoline Benefit

On December 1, 2005, the second paragraph of section III of Article 31 of the Income Tax Law became effective and requires taxpayers seeking to deduct the purchase of gasoline to pay with the taxpayer’s check payable to the seller, with a credit, debit or services card, or with a prepaid card, authorized by the Tax Administration Service. On January 25, 2006 a new amendment to Rule 3.4.41 of the Omnibus Tax Ruling was published in the Federal Official Gazette to the effect that the requirements set out above will be considered complied with if, through not fault of their own, taxpayers cannot make payments for gasoline purchases by any of the forms of payment mentioned above, but who nevertheless comply with the requirements below: a) The purchases are made after December 1, 2005, and b) The taxpayer files a notice with the Local Taxpayer Assistance Administration for the jurisdiction of the taxpayer, including the: (i) Number of the service station where the gasoline was purchased, (ii) Month to which the report refers, (iii) Total amount of purchases per service station, and (iv) Reasons why the payment of gasoline could not be made using one of the authorized forms of payment. The information for December, 2005 should be submitted no later than February 28, 2006, and for subsequent months, in the month immediately following the one for which the report is being made. Should you have any questions or need additional information please do not hesitate to contact us. Luis Ortiz-Hidalgo [email protected], Gerardo Nieto [email protected], Gil Zenteno [email protected], or Alejandro Barrera [email protected].