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How to Defend Your Business Against an SAT Tax Audit

8 min read · February 2025

How to Defend Your Business Against an SAT Tax Audit

A Tax Administration Service (SAT) audit can generate tax assessments that threaten the continuity of a business. Knowing the types of review and the appropriate defense strategy can significantly reduce the impact.

The Three Types of SAT Audits

Deadlines You Cannot Ignore

In a desk review, the taxpayer has 15 business days to submit the requested information (extendable once by 10 additional days). In an electronic review, the deadline is 15 days with no automatic extension. Failing to respond on time may result in the provisional tax assessment becoming final with no opportunity for clarification.

Documents SAT Always Requests

Regardless of the audit type, always prepare:

Available Challenge Mechanisms

If SAT issues a tax assessment you believe is incorrect, you have three main options:

Representative case

How we work: before and after

Situation based on real cases handled by the firm. Data modified to protect client confidentiality.

Before

Company Facing a $4.2M MXN Tax Assessment for Non-Deductible Expenses

A construction company in SLP received an electronic audit for fiscal year 2022. SAT determined that $4.2M in expenses lacked economic substance (no contracts, no evidence of services received). The preliminary assessment was issued with 15 days to provide rebuttal evidence.

After

Assessment Reduced 78% Through Economic Substance Documentation

Within 12 days we submitted contracts, communications, deliverables, and testimony from the questioned vendors. We demonstrated the economic substance of 78% of the amount. The final assessment was $920,000, which the company paid in installments. We filed a motion for revocation for the remaining 22%, currently pending resolution.

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