Simulated operations in Mexico: Focus of corruption

Abstract

Companies that Invoice Simulated Operations (EFOS) are called Phantom Companies, and as their name indicates, they are organizations that issue invoices for movements that are not actually occurring, which causes a serious problem with the Tax Administration Service. (SAT).

These companies do not have employees or domicile, but they have the papers in order before the corresponding instances, such as registration with the Treasury, before the Ministry of Economy, with constitutive acts, etc., and most importantly: they have the stamps to issue invoices. for providing services or producing goods that they are unable to provide. They are companies that do not physically exist and are generally used to commit alleged crimes such as tax evasion, money laundering or the diversion of public resources.

The "ghost" companies by themselves do not evade taxes, nor launder money, nor disappear public resources, but require a whole structure of corrupt officials who design the scheme to simulate contracts to divert the money, as well as multiple operators, such as financial advisers, lawyers, notaries, accounting firms and lenders who execute it in the purest style of organized crime,  in addition to the collusion of some authorities that allow and favor impunity and the protection of this network of corruption.

In the Mexican Public Administration, they have been used to disguise the diversion of resources, which should be used for the benefit of Mexicans, in favor of an individual.

In seven years, the SAT has detected almost 11,000 shell companies. The last update of the list, as of December 16, 2021, states that a total of 10,990 Companies that Bill Simulated Operations (EFOS) for more than two trillion pesos were identified. The problem is so serious that the Public Sector acquired between 50 and 70% of all false invoices detected in recent years.

DOI:https://doi.org/10.56238/uniknowindevolp-041