The veil of simulation: Illicit operations in Mexico

Abstract

The objective of this paper is a systematic review of operations with illicit proceeds that have yielded millions in profits for organized crime and affect the Mexican state's revenue collection due to the commission of the crime of tax evasion, activities classified as tax crimes which are stipulated in article 400 bis of the Federal Penal Code, as well as the relative 115-bis of the Federal Tax Code. A documentary, inductive, deductive, synthetic and analytical study was carried out on a sample of articles of the penal code and the fiscal code: Federal Law for the Prevention and Identification of Operations with Illicit Proceeds (LFPIORPI), the Federal Law against Organized Crime (LFDO), the Federal Law on the Forfeiture of Domain, Regulatory of Article 22 of the Political Constitution of the United Mexican States (LFED), the Federal Law for the Protection of Personal Data Held by Private Parties (LFPDPPP) and the Federal Anti-Corruption Law in Public Contracts (LFACP) in order to address the issue of simulated operations by referring to the procedure established in article 69-B of the Federal Fiscal Code. In relation to the state of the art, the impact of illicit operations on tax collection is discussed and it is recommended to extend the review to the collateral effects of the crimes in question in the Anti-Money Laundering Law.