What are the best practices I should follow in the Authorized Donee I am a part of? How do we avoid the revocation of this Authorization?
The legal entities recognized by the Tax Administration Service (SAT) as Authorized Donees acquire obligations inherent to their authorization, being submerged in strict compliance with specific rules, to keep such recognition. Resulted in exhaustive care in the operation and administration of the organization.
Thus, this group, formed by trusts and civil organizations, has the imperative need to be in constant training and surrounded by experts in the field to help them implement processes that lead to compliance, not only for the corporate purpose but for which they were created, but also of the requirements requested by the SAT for the maintenance of the Authorization as an Authorized Donee, becoming a titanic and highly demanding work.
In the same order of ideas, it is necessary to make known the 8 most common good practices, which contribute to a great extent, to the compliance with the obligations imposed by the SAT for the conservation of such authorization:
To hold at least one general assembly of associates per year, in which, in addition to the necessary items, the results of the recently concluded fiscal year are approved, as well as to hold the necessary extraordinary assemblies, as provided for in its bylaws.
To have updated Corporate Bylaws as required by the current Model Corporate Bylaws, issued by the SAT.
Make sure to celebrate the necessary revocations of appointments and mandates the legal entity grants.
Update every 3 years the Certificate of Accreditation of Activities.
Maintain up-to-date general information of the associates, administrative body, members of commissions, if any, attorneys-in-fact, volunteers, and any other person who, under any position or appointment, is involved in the association's activities.
Corroborate that no associate, member of the administrative body, or legal representative, has been part of a civil organization or trust, whose authorization has been revoked in the last 5 years due to casualties provided for in Article 69-B of the Fiscal Code of the Federation in force.
Establish means of control that allow them not to exceed 5% of their annual donations in administrative expenses.
Establish mechanisms that help them not to exceed 50% of their total income from income unrelated to their purpose.
Regarding the above, it is essential that the accounting, tax, and legal advisors of the donees are clear about the compliance of each one of the obligations that must be met, since when it comes to authorized donees, the tax authority becomes especially meticulous in its review.
In conclusion, it is of great importance that the Authorized Donees, accompanied by their specialist advisors in the matter, stop to make a diagnosis as exhaustive as necessary, to determine if they are fully complying with the obligations to which they are subject. If not, the situation should be immediately addressed and resolved.
Published on February 19th, 2024
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