Jose Manuel Ramirez on the SAT's AI-Driven Tax Audits
José Manuel Ramírez, tax expert in A&M Tax México, was recently featured in Expansión where he discussed how the use of artificial intelligence and technology has enhanced the efficiency of the Tax Administration Service (SAT) in Mexico. Since 2024, this advanced technology has allowed the SAT to more accurately detect and impose tax debts, leading to a significant increase in the amount of tax credits, which rose by over 522 billion pesos from 2023 to 2024.
He explained that the government has focused on building a sophisticated system over several years, which enables them to quickly identify risk signals and focus audits effectively. “There is no magic formula. The formula is that the government has decided to be much more energetic and efficient in handling audits through the use of technology. They spent several years building a very sophisticated system, which today even includes artificial intelligence. We have been providing a lot of information electronically for years. All the conditions are now in place for them to be able to quickly identify risk signals and focus their audits,” Ramírez said.
The majority of tax credits are concentrated on large companies, and Ramírez expects this trend to continue for the next five to ten years, with audits extending to smaller businesses and specific sectors. He also highlighted that while audits are becoming more efficient, there are still mechanisms for taxpayers to defend their interests when necessary.
