Fiscal Digital Media in Chihuahua

As in the federal system, the Tax Code of the State of Chihuahua, by virtue of the use of new technologies, created digital means through which taxpayers must comply with their tax obligations. Of course, they are not yet as sophisticated as those used by the Federation, which I discussed in Electronic Media in Tax Matters in Mexico. However, this is only due to the adaptation of the state of Chihuahua and, in general, all federal entities to new technologies.

Therefore, even though the digital means I will discuss below are not yet fully used in our state, it is essential that taxpayers, accountants, and lawyers have a grasp of them, since they are part of the future, and paper-based procedures for complying with tax obligations will soon cease to exist.

Without further ado, let’s begin:

List of Contents

1) Definitions

In order to better understand what digital media are and what lies behind them, it is necessary to understand the multiple concepts used interchangeably by the Chihuahua legislator in this area.

A) Electronic Receipt

The electronic receipt consists of a digital document with an Advanced Electronic Signature that the recipient transmits when opening the digital document sent to them, and which certifies that the tax authorities received a digital document. In this case, the electronic receipt will identify the agency that received the document. Unless proven otherwise, it will be presumed that the digital document was received on the date and time indicated in said acknowledgment.

The tax authorities will establish the means for the parties and those authorized to receive notifications to verify the authenticity of electronic acknowledgments of receipt.

B) Digital Certificate

The digital certificate is the unique set of alphanumeric characters assigned by the tax authorities to taxpayers as a means of identification. The security key will be personal, non-transferable, and confidential. Therefore, the taxpayer will be responsible for its use to open the digital document sent to them.

C) Email Address

Although this concept does not require further explanation because it is obvious, for tax purposes, it is understood as the communication system via computer networks, declared by the taxpayer to the tax authorities.

D) Digital Document

This consists of any data message containing information or writing generated, sent, received, or archived by electronic, optical, or any other technology related to state tax matters.

E) Advanced Electronic Signature

Probably the most important concept for our subject matter, it consists of electronic identification recorded in a data message, attached to it, or logically associated with it, which can be used to identify the signatory and indicate that they approve the information contained in said message. Furthermore, the Advanced Electronic Signature establishes the relationship between the data and the signatory’s identity.

The Chihuahua State Treasury may authorize the use of the Advanced Electronic Signature used for federal tax procedures for state tax purposes.

F) Signatory

The person who possesses the data for creating the Advanced Electronic Signature and the digital certificate, acting on their own behalf or on behalf of the person they represent.

G) Electronic File

A set of information contained in electronic files or digital documents that comprises it, regardless of whether it is text, image, audio, or video, identified by a specific number.

H) Public Key

The string of binary digits (bits) belonging to a particular entity and capable of being publicly known, used to verify the entity’s Advanced Electronic Signature, which is mathematically associated with its private key.

I) Private Key

The string of binary digits (bits) known only to an entity, which is used in conjunction with a data message to create the Advanced Electronic Signature related to both elements.

J) Data Message

Information contained in text, image, audio, or video generated, sent, received, or stored by electronic, optical, or any other technology.

K) Digital Seal

This electronic message certifies that the corresponding authority has received a digital document and is subject to the same regulations applicable to the use of an electronic signature.

L) Electronic Funds Transfer

Payment of contributions made electronically by a financial institution, at the direction of taxpayers or related third parties, through the allocation of their bank account in favor of the Ministry of Finance of the State of Chihuahua.

2) CEIT Code as a Replacement for the Advanced Electronic Signature

The Chihuahua State Treasury Department created the CEIT code as an authorized replacement for the Advanced Electronic Signature. This code serves as an access mechanism to the tax benefits, procedures, and services the Chihuahua State Treasury Department provides.

A) Authentic Signature

The CEIT code is personal, non-transferable, and confidential. Therefore, it replaces a handwritten signature and produces the same effects as the laws grant to documents containing it, having the same probative value. Hence, as a taxpayer, you will be responsible for using it.

B) Establishing the CEIT Code

The CEIT code is established by the Federal Taxpayer Registry (which, if you’d like to learn more about, I invite you to read my post titled The Federal Taxpayer Registry in Mexico) as well as the password assigned by the Chihuahua State Treasury for this purpose.

C) Recovering the CEIT Code

If the taxpayer forgets their password, they can recover or change their CEIT code by going to the tax collection offices, presenting the required documentation, completing the corresponding password recovery form, or using any other methods established by the Chihuahua State Treasury.

D) Ineffectiveness of the CEIT Code

The CEIT code will become ineffective when:

I.- The taxpayer requests it in a written statement.

II.- A judicial or administrative ruling orders it.

III.- The natural person holding the CEIT code dies. In this case, the request must be submitted by a legally authorized third party, who must accompany the corresponding death certificate.

On the other hand, when the notices filed with the State Taxpayer Registry confirm the death of a natural person who, either personally or through legal representation, holds a CEIT code, it will be considered that the notices also include the request to revoke said code.

IV.- Companies, associations, and other legal entities are dissolved, liquidated, or extinguished. In this case, the liquidators will submit the corresponding request.

V.- The splitting or merged company disappears due to the spin-off or merger, respectively. In the first case, cancellation may be requested by any of the splitting companies; in the second, by the remaining company.

VI.- It is verified that it did not meet the legal requirements at the time of issuance, a situation that will not affect the rights of bona fide third parties.

E) Obligations of the CEIT Key Holder

The holder of the CEIT key shall have the following obligations:

I.- Act with diligence and establish reasonable means to prevent unauthorized use of the CEIT key creation data.

II.- Ensure that all statements made in relation to the CEIT key, its validity, or those that have been recorded therein are accurate.

III.- Request revocation of the CEIT key under any circumstances that may jeopardize the privacy of your creation data.

Finally, and most importantly, it should be emphasized that the holder of the CEIT key will be responsible for the legal consequences arising from failure to comply promptly with the obligations set forth in the preceding paragraphs.

3) Use of Digital Media in Tax Matters

When taxpayers submit a digital document to the tax authorities, they will receive a receipt containing the digital seal. In this case, the digital seal will identify the agency that received the document. Unless proven otherwise, it will be presumed that the digital document was received at the time and date indicated in the aforementioned receipt.

For these purposes, a certificate confirming the link between a signatory and the data used to create an Advanced Electronic Signature must be available.

In digital documents, an Advanced Electronic Signature supported by a valid certificate will replace the signatory’s handwritten signature, guarantee the integrity of the document, and produce the same effects that the laws grant to documents with handwritten signatures, having the same evidentiary value, which is the CEIT key I already explained.

A) Validity of the Advanced Electronic Signature and CEIT Key

For tax purposes, both the Advanced Electronic Signature and the certificates (CEIT key) will have a maximum validity of 4 years, counted from the date they are issued. Before the validity period of a certificate expires, its holder may request a new one.

4) Validity of Digital Certificates

Digital certificates, such as the CEIT key, issued by tax authorities, must contain the following information to be considered valid:

I.- A statement stating that they are issued as such. In the case of digital seal certificates, any limitations on their use must be specified.

II.- The certificate’s unique identification code.

III.- A statement stating that the competent authority issued it, the name of the agency, and an email address.

IV.- Name of the certificate holder and their State Taxpayer Registry key.

V.- The certificate’s validity period, specifying the start date and end date.

VI.- A statement of the technology used to create the Advanced Electronic Signature contained in the certificate.

VII.- The certificate holder’s public key.

5) Loss of Effect of Digital Certificates

Certificates issued by tax authorities will become void when:

I.- The signatory requests it.

II.- A judicial or administrative resolution orders it.

III.- The natural person holding the certificate dies. In this case, revocation must be requested by a legally authorized third party, who must submit the corresponding death certificate.

IV.- Companies, associations, and other legal entities are dissolved, liquidated, or extinguished. In this case, the liquidators will submit the corresponding request.

V.- The splitting or merged company disappears due to the spin-off or merger, respectively. In the first case, cancellation may be requested by any of the spun-off companies; in the second, by the surviving company.

VI.- The certificate’s validity period expires.

VII.- The electronic medium containing the certificates is lost or rendered unusable due to damage.

VIII.- It is proven that the certificate did not meet the legal requirements at the time of issuance, a situation that will not affect the rights of bona fide third parties.

IX.- When the confidentiality of the data used to create the Advanced Electronic Signature of the Chihuahua State Treasury Department is jeopardized.

6) State Tax Mailbox

Individuals and legal entities registered in the State Taxpayer Registry will be assigned a tax mailbox, consisting of an electronic communication system located on the website of the Chihuahua State Treasury Department, through which:

I.- The tax authority will notify any administrative act or resolution it issues in digital documents, including any that may be appealed.

II.- Taxpayers will submit requests, applications, and notices, or comply with requests from the authority through digital documents, and may inquire about their tax status.

It should be noted that individuals and legal entities assigned a tax mailbox must check it within three days of receiving an electronic notification from the Chihuahua State Treasury Department using the communication mechanisms the taxpayer chooses from among those provided by general rules. The authority will send a confirmation notice, once only, through the selected mechanism. This will serve to corroborate the authenticity and correct operation of the notification.

By Omar Gómez

Mexican Tax, Administrative, and Constitutional Attorney

Contact me at omar.gomez@belegalabogados.mx