New Report Suggests Some of Mexico’s Employee Leasing Companies May Be at Risk

According to the Mexico Tax, Law and Business Briefing: 2009, published this month by WorldTrade Executive, Inc., recent developments suggest that Mexico’s Federal Government is taking a tougher stance regarding employee leasing companies.

A common component of the corporate and tax strategy used by multinational firms doing business in Mexico, employee leasing is a strategy whereby employees of a client firm are transferred to or hired by a separate entity which then leases these employees back to the client firm. According to the Briefing, the Mexican House of Representatives has approved a bill placing controls on employee leasing, and a similar bill is under discussion in the Senate. Also last summer Mexico’s Tax Administration Service announced an auditing program to combat tax evasion through employee leasing companies with an initial target of 455 firms.

Given the extent of employee outsourcing strategies implemented by multi-national firms in Mexico, the Mexico Tax, Law and Business Briefing suggests these and other developments raise concerns about the scope of the Mexican Government’s program, its definition of the line between tax evasion, avoidance and planning in this area.

To read the full article, go to www.wtexec.com/leasing.html About Mexico Tax, Law and Business Briefing: 2009

Mexico Tax, Law and Business Briefing: 2009 provides guidance on tax and legal issues investors should consider when evaluating a possible company acquisition, starting a business or entering into a joint venture or strategic alliance in Mexico, or a workout transaction. Content is provided by experts at major accounting and law firms in the region. More information is available at www.wtexec.com/mextlb.html

About WorldTrade Executive, Inc.

WorldTrade Executive specializes in providing reports and periodicals concerning tax and legal issues in international markets. Products include a family of periodicals covering tax strategies used by leading corporations to manage international tax issues, with regional editions focusing on China, Asia, Europe, South America and Mexico. There are also special reports on tax issues in markets such as China, Brazil, and the Andean Region.

For more information or to sign up for a free international tax briefing go to www.wtexec.com/tax.html or contact Jay Stanley at 978-287-0301 or at 2250 Main St., Concord, MA. 01742. WorldTrade Executive, Inc. "

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