Issue 136-Nov/Dec 2016



December 15, 2016

Recent Jurisprudence – Penalty Interest and Usury in Promissory Notes, by Adrian Salgado

Recently, the First Chamber of the Supreme Court of Justice of the Nation issued legal opinion by contradiction number 1a./J. 54/2016(10a.) titled: “Usury. Its prohibition applies to ordinary and penalty interest in a promissory note.” Legal opinion number XVI.3o.C. J/1 (10a.) titled: “Usury.  Its prohibition applies to penalty interest,” issued by the Third Collegiate Court on Civil Matters of the Sixth Circuit and previously discussed in a prior edition of the CCN MexicoReport®, was part of the contradiction resolved by the legal opinion discussed in this article and pursuant to which the highest Court has determined that given the prohibition against usury established in the American Convention on Human Rights, the law, based on the principle of contractual freedom, should … read more


December 15, 2016

Regulatory Updates on the Occupation of Land for Electric Generation Projects, by José María Lujambio

Article 71 of the Electric Industry Law (EIL) provides that the occupation of the surface or the establishment of easements for the construction of power plants shall take place in cases in which the characteristics of the project require a specific location. Since the publication of the EIL in the Official Journal of the Federation in August 2014, there has been concern within the industry as to whether such precept should be understood as applicable to all electric generation projects that use renewable sources or only some of them.  The definition was of utmost importance in order to determine the types of projects that would be subject to the strict rules of the EIL applicable to the negotiation and agreement … read more


New Registration System for the Certification of Companies: Permanent Compliance of Obligations to Maintain Certification, by Edmundo Elias and Marisol de León

Prior to January 1, 2015, companies that introduced goods under temporary importation customs regimes, such as the IMMEX (Maquila) Program, in bond deposit for the assembly and manufacture of vehicles, in-bond premises and strategic foreign trade zones, had the benefit of importing goods temporarily to carry out their production process or service, without paying the value added tax, and, where applicable, the Special Tax on Production and Services for said imports. On December 11, 2013, the addition of Article 28-A of the Value Added Tax Law and the reform of Article 15-A of the Law on the Special Tax on Production and Services were published in the Official Journal of the Federation, which established that companies that operate under any … read more


Outsourcing and Money Laundering. New Interpretation by the Fiscal Authorities, by Miriam Name and Fernando Juárez

In recent days, the Unit of Financial Intelligence (UFI) of the Department of the Treasury and Public Credit issued new criteria identifying outsourcing as a vulnerable activity for purposes of the Federal Law for the Prevention and Identification of Transactions with Resources from Illicit Sources (LFPIORRC, for its Spanish acronym or Anti-Money Laundering Law).   By means of such criteria, the UFI determined that providing independent professional services (outsourcing) is a vulnerable activity pursuant to the terms of the Anti-Money Laundering Law.  Consequently, all Companies that provide personnel services, whether to related parties or to third parties, are subject to the regulations of the Anti-Money Laundering Law, and, therefore, must identify such transactions and provide required notices and reports contained … read more


Constitutional Reforms on Labor Matters, by Maria Fernanda Magallanes

On November 4, 2016, the Federal Congress approved an initiative to amend various provisions of the Constitution of the United Mexican States on labor matters. The initiative seeks an in depth reform of procedural law in order to guarantee autonomy in the administration of justice and to improve the system of distribution of jurisdiction between federal and state arenas. To this end, the State and Federal Conciliation and Arbitration Boards are expected to disappear  and will be replaced by federal or state judicial courts, as well as decentralized Conciliation Centers, to serve as a prejudicial authority where there shall be a single mandatory conciliation hearing and subsequent hearings as per the agreement of the parties.  The Conciliation Centers will also … read more


Constitutional Reforms on Labor Matters, by Maria Fernanda Magallanes

On November 4, 2016, the Federal Congress approved an initiative to amend various provisions of the Constitution of the United Mexican States on labor matters. The initiative seeks an in depth reform of procedural law in order to guarantee autonomy in the administration of justice and to improve the system of distribution of jurisdiction between federal and state arenas. To this end, the State and Federal Conciliation and Arbitration Boards are expected to disappear  and will be replaced by federal or state judicial courts, as well as decentralized Conciliation Centers, to serve as a prejudicial authority where there shall be a single mandatory conciliation hearing and subsequent hearings as per the agreement of the parties.  The Conciliation Centers will also … read more