Continuing with the series on often unknown tax law in the state of Chihuahua that began in Generalities of Tax Law in the State of Chihuahua Part I, and after having addressed the topics:
2) Mandatory Payment of Contributions
A) Exemption From Paying Local Taxes
3) Authorities in Charge of Tax Collection
4) Interpretation of Tax Regulations
5) Validity of State Tax Regulations
6) Alienation for Tax Purposes
A) Alienation Within the State of Chihuahua
A) Social Security Expenditures
A) Tax Domicile of Individuals
B) Tax Domicile of Legal Entities
9) Residents in the State of Chihuahua
A) Authorized to Issue Appraisals
Now it’s time to wrap up the general provisions governing local tax matters. So, without further ado, let’s begin:
List of Contents
- 13) Tax Self-Determination
- 14) Payment of Taxes
- A) Payment by Declaration
- B) Payment Through Withholdings
- C) Payment of Tax Liabilities
- 15) Update of Contributions
- A) Update of Values
- B) Accessory Nature of the Update
- C) Adjustment Duty
- D) Publication of the Update Factor
- E) Updating Refunds
- 16) Surcharges on Contributions
- A) Time Limit on Surcharges
- B) Surcharges on Differences
- C) Surcharges on Guarantees
- D) Exemption From Surcharges for Penalties
- 17) Means of Payment in Tax Matters
- A) Dation in Payment
- B) Compensation for Bad Checks
- C) Determination of Contributions in Foreign Currency
- D) Determination of Contributions and the Order of Their Payment
- E) Partial and Coercive Collection
- 18) Tax Liability
- A) Concept
- B) Stale of the Tax Liability
- C) What Is Understood By Debt Collection?
- D) Suspension of the Tax Statute of Limitations
- E) Limit on the Tax Statute of Limitations
- F) How Does the Statute of Limitations Apply?
- G) Cancellation of Tax Liabilities
- H) Partial Forgiveness of Tax Liabilities
- I) Extinction of Tax Liabilities of Public Bodies
- 19) Revenue
13) Tax Self-Determination
As a fundamental principle in our state of Chihuahua, self-determination stands out. This principle implies that, as a general rule, taxpayers shall be responsible for determining their taxes, unless expressly provided otherwise. Therefore, if the tax authorities must make the determination, taxpayers must provide them with the necessary information within 15 days of the date of accrual to make the determination.
14) Payment of Taxes
A) Payment by Declaration
Similar to federal taxes, taxes and benefits are paid by declaration, which taxpayers must file on the date or within the period specified by the respective tax regulations. In the absence of an express provision, payment must be made by declaration, which must be submitted to authorized offices within 15 days of the accrual date.
B) Payment Through Withholdings
On the other hand, in the case of taxes payable through withholding, even if the party responsible for withholding does not withhold or pay the corresponding compensation, the withholding agent shall be obligated to pay an amount equivalent to what should have been withheld.
Furthermore, when withholding agents must pay for goods, they will only deliver the goods in question if the recipient provides the necessary funds to carry out the withholding in national currency.
C) Payment of Tax Liabilities
Anyone making tax liability payments must obtain from the collection office the official form, official receipt, or valued form, issued and controlled exclusively by the Treasury Department of the State of Chihuahua, or the documentation established in the respective provisions, which includes the original printout from the cash register. In the case of payments made at the offices of credit institutions, the printout from the cash register, the seal, the certificate, or the electronic acknowledgment of receipt with a digital seal must be obtained.
Also, when the obligation to pay the tax liability arises from joint and several liability under legal provisions, the tax authorities must, prior to notification of the resolution establishing this, inform the jointly liable party of the procedures carried out in the exercise of their audit powers.
Finally, when tax provisions establish options for taxpayers to comply with their tax obligations or to determine their contributions, the option chosen by the taxpayer cannot be changed for the same fiscal year.
15) Update of Contributions
The amount of contributions, benefits, and refunds payable by the State Treasury shall be updated over time and in response to changes in prices in the country. For this purpose, the update factor shall be applied to the amounts to be updated. This factor shall be obtained by dividing the National Consumer Price Index for the month prior to the most recent month of the period by the aforementioned index corresponding to the month before the oldest month of the period.
In any case, contributions, benefits, and refunds payable by the State Treasury shall not be updated by fractions of a month.
On the other hand, the National Consumer Price Index to be applied refers to the one published by the National Institute of Statistics and Geography, pursuant to applicable provisions. Also, in cases where the National Consumer Price Index corresponding to the month before the most recent period has not been published, the relevant update shall be carried out by applying the most recently published monthly index.
Finally, when the result of the operation is less than 1, the update factor applied to the amount of contributions, benefits, and refunds payable to the treasury of the state of Chihuahua, as well as the values of the assets or transactions in question, shall be equal to 1.
A) Update of Values
When the laws so provide, the values of assets or transactions shall be updated in accordance with the provisions of the preceding paragraphs, notwithstanding that the applicable provisions shall specify in each case the period for which the update must be made.
B) Accessory Nature of the Update
The updated amounts shall retain the legal nature they had before the update, so the amount of the update, determined in the final payments, shall not be deductible or creditable for tax purposes.
C) Adjustment Duty
The amounts in national currency established in the Fiscal Code of the State of Chihuahua shall be adjusted when the accumulated percentage increase in the National Consumer Price Index since the month in which they were last adjusted exceeds 10%. This adjustment shall take effect on January 1 of the fiscal year following the one in which the aforementioned increase was accumulated.
For the previous adjustment, the period from the last month used in the calculation of the last adjustment to the last month of the fiscal year in which the aforementioned percentage is exceeded shall be considered. For these purposes, the adjustment factor shall be obtained by dividing the National Consumer Price Index of the month immediately preceding the most recent month of the period by the National Consumer Price Index corresponding to the month before the last month used in the calculation of the last adjustment.
Likewise, for amounts established in the Tax Code of the State of Chihuahua that have not been subject to an update under the terms of the preceding paragraphs, the National Consumer Price Index corresponding to November of the fiscal year immediately preceding the one in which they came into effect shall be used to carry out their update.
Finally, even fractions of pesos shall be considered to determine the updated amounts. However, said amount shall be adjusted so that amounts from 0.01 to 5.00 pesos in excess of a ten shall be adjusted to the immediately preceding ten, and from 5.01 to 9.99 pesos in excess of a ten shall be adjusted to the immediately higher ten.
D) Publication of the Update Factor
The Ministry of Finance of the State of Chihuahua shall perform the arithmetic operations provided for in this section and shall publish the update factor, as well as the updated amounts, in the Official State Gazette.
On the other hand, when, in accordance with tax regulations, arithmetic operations must be performed to determine factors, they must be calculated up to ten thousandths.
E) Updating Refunds
In the case of refunds, the update shall be made for the period from when the undue payment was made or the credit balance was generated until the month in which the refund is available to the taxpayer.
16) Surcharges on Contributions
When taxpayers or jointly liable parties fail to pay their contributions or benefits on the due date or within the period established by tax provisions, their amounts shall be updated from the month in which payment should have been made until the payment is made. In addition, surcharges shall be paid as compensation to the State Treasury for non-timely payment. These surcharges shall be calculated by applying to the amount of the contributions or benefits updated for the period referred to in this paragraph the rate resulting from adding the rates applicable in each year for each of the months elapsed during the update period for the contribution or benefit in question.
The surcharge rate for each month of arrears shall increase by 50% of the rate set annually by the State Congress in the Revenue Law for cases of extension. For this purpose, the rate shall be considered up to the hundredth and, where applicable, shall be adjusted to the next higher hundredth when the thousandth digit is equal to or greater than 5, and when the thousandth digit is less than 5, the rate shall be maintained at the resulting hundredth.
Finally, surcharges shall be levied for each month or fraction thereof that elapses from the day the payment should have been made until it is actually made. Under no circumstances may taxpayers be exempt from updating their contributions or benefits.
A) Time Limit on Surcharges
Surcharges for non-timely payment of contributions or benefits shall be incurred for up to 5 years, except in the cases referred to in Article 112 of the Tax Code of the State of Chihuahua[1], in which case the surcharges shall be incurred until the tax authorities’ authority to determine the omitted contributions or benefits and their accessories expires. Surcharges shall be calculated on the total tax liability, excluding, unless expressly provided otherwise, the surcharges themselves, the compensation referred to in Section XVII, paragraph B) of this entry, enforcement costs, and fines for violations of tax provisions.
B) Surcharges on Differences
When the payment of contributions or benefits the debtor makes is less than the corresponding amount, the surcharges shall only be incurred on the difference. Payments made under this paragraph do not release taxpayers from any outstanding obligations after the payment is made.
C) Surcharges on Guarantees
In cases where guarantees are issued for tax obligations held by third parties, surcharges shall be levied on the amount required and up to the limit of the guaranteed amount, if payment is not made within the legal deadline.
D) Exemption From Surcharges for Penalties
Financial penalties imposed by any authority shall only be updated under the terms provided in this section and shall not incur surcharges, even if they must be enforced through the administrative enforcement procedure.
17) Means of Payment in Tax Matters
Accepted means of payment are cash in national currency, checks from the debtor’s personal account, certified or cashier’s checks, electronic funds transfers payable to the Ministry of Finance of the State of Chihuahua, as well as credit and debit cards, and the transfer of assets.
Taxes and their accessories shall be accrued and paid in national currency.
A) Dation in Payment
The Ministry of Finance of the State of Chihuahua may exceptionally accept the transfer of assets as payment, either in whole or in part, of tax liabilities owed to the state, including those of parastatal entities, once the debtor proves to the tax authority that they have no other means of payment in cash, provided they are easily transferable or can be used for the state’s own purposes.
Assets Not Suitable for Dation in Payment
In any case, the following shall not be accepted as a dation in payment:
I.- Assets that are easily decomposed or deteriorate.
II.- Those that are seized, offered as collateral, or have some lien or encumbrance.
III.- Those subject to a co-ownership regime, when it is not possible for the
Secretary of Finance of the State of Chihuahua to assume exclusive ownership of all rights.
IV.- Those subject to a trust.
V.- Those that, by their nature or by legal provision, are outside the market and those that are not subject to seizure under the terms of the Fiscal Code of the State of Chihuahua, as well as merchandise of foreign origin whose legal presence in the country is not accredited, livestock, prohibited weapons, and flammable, polluting, radioactive, or hazardous materials and substances.
Application
Now, to make the payment of a tax liability through payment in kind, the following must be added to the form published for this purpose by the Ministry of Finance of the State of Chihuahua:
I.- Declaration under penalty of perjury that the tax liability intended to be covered through payment in kind is final for collection.
II.- Amount of the tax liability, including the contributions included in it, their amount and accrued accessories, and the periods corresponding to the date of submission of the application, the liability number, and, if applicable, the resolution containing it.
III.- Description and characteristics of the goods offered, and a statement of their physical condition, specifying whether they are new or used.
IV.- Declaration under penalty of perjury that payment in kind is the debtor’s only means of fulfilling their obligation, and that they do not have other assets that are more easily realized or sold, which must be verified.
Documentation For Dation in Payment
Similarly, the following documentation must be attached to the application for dation in payment:
I.- Proof of the last notification of the amount owed if the authority has already determined the tax liability, or, if applicable, notification of the current tax liability status.
II.- In the case of legal entities, the financial statements for the last fiscal year.
III.- In the case of real estate, the following documentation shall also be required:
A) Appraisal issued, as applicable, by one of the authorized entities, no more than six months old as of the date of the application.
B) Copy of the deed or public instrument proving ownership, duly registered in the Public Registry of Property and Commerce. The property must be located within the territorial limits of the state of Chihuahua.
C) Certificate of freedom from liens, no more than 15 days old, counted from the date of filing the application for dation in payment.
D) Copy of the plans with measurements, boundaries, and location sketches.
E) Recent photographs of the properties, no more than 3 months old.
IV.- In the case of personal property, the following documentation shall also be required:
A) Appraisal issued no more than 3 months old from the date of the application.
B) Original document or invoice proving ownership, except when the proposed goods are manufactured by the debtor, in which case the debtor must present their list prices and copies of the first and last sales invoices for goods identical to those proposed, issued by the debtor in each of the 6 months before the date of applying, or any other element that allows determining or specifying the value of such goods.
C) In the case of movable property of foreign origin, the originals of the documentation proving its legal importation shall also be required, by the Customs Law.
D) Recent photographs of the movable property, no older than one month.
Dation in Payment Processing
For the purposes of the dation in payment proposal request, if, in the opinion of the authority receiving the request, the submission of additional documentation or any documentary clarification is necessary, the applicant shall be required to comply with the requested requirements within 10 business days, counted from the notification of the corresponding request. The applicant shall be warned that failure to do so shall result in the request being deemed not submitted and the corresponding collection procedure continuing.
Furthermore, the Chihuahua State Treasury shall be empowered at all times to review and, where appropriate, validate the appraisals submitted by the applicants and may request a new appraisal from the State Cadastre in the case of real estate, or from whoever is authorized to do so in the case of personal property.
Furthermore, if, in the judgment of the authority, the application does not fully or partially meet the requirements and conditions necessary for acceptance of the proposed dation in payment, either because it does not meet the essential or documentary elements for its admissibility, or because the proposed assets are not easily realized or, where appropriate, are not usable or useful for state public services, or are among those indicated in the «Assets Unsuitable for Dation in Payment» section of this entry, a resolution shall be issued denying the proposed dation in payment application, notifying the interested party for the corresponding legal effects.
Also, if the analysis of the documentation presented determines that the debtor has the financial capacity to cover part of the debt with cash, the Treasury Department of the State of Chihuahua may resolve that part of it be covered with one of the other means of payment described in section 17) of this entry and the difference with the payment of assets, indicating the circumstances that were taken into account to issue this resolution.
Acceptance of Dation in Payment
If the dation in payment is accepted, the Treasury Department of the State of Chihuahua shall issue the corresponding resolution, suspending, as of the date the dation in payment application is filed, the generation of accessories and all actions aimed at collecting the tax credit.
A dation in payment that the authority has accepted shall extinguish the taxpayer’s tax obligation until the assets received as dation in payment are delivered to the authority, or until the public deed evidencing the transfer of ownership is signed, in the case of real estate.
If the dation in payment is not formalized, the suspension of collection will be void, as if it had never existed, with the tax credit being updated from the date the payment should have been made until it is actually made.
B) Compensation for Bad Checks
A check received by the tax authorities as payment of any of the revenues owed to the state of Chihuahua, which is presented on time and is not paid by the issuing institution for reasons attributable to the issuer, shall result in the collection of the amount of the check and compensation equivalent to 20% of its value.
For these purposes, the total amount of the check and the corresponding compensation are considered tax liabilities and will generate, from the date the issuing institution rejected it, the updates and surcharges provided for non-timely payment. The liability thus generated shall be made effective to the taxpayer or to the person who made the payment on their behalf.
This compensation and the collection of the amount covered by the check shall be demanded independently of any other items owed to the tax authorities.
Finally, when the issuer of the returned check is a person other than the taxpayer, the latter shall be jointly and severally liable to make the payment.
C) Determination of Contributions in Foreign Currency
When obligations generated in foreign currency must be determined, to establish them in national currency, where applicable, together with any additional amounts, the exchange rate at which the foreign currency in question was acquired shall be considered. If there is no acquisition or when such acquisition cannot be verified, the exchange rate published by the Bank of Mexico in the Official Gazette of the Federation on the day before the day on which the contributions are due shall apply. On days when the Bank of Mexico does not publish the aforementioned exchange rate, the most recent exchange rate published before the day the contributions are due shall apply.
The equivalence of the Mexican peso with foreign currencies other than the United States dollar, which shall apply for tax purposes, shall be calculated by multiplying the exchange rate referred to in the previous paragraph by the dollar equivalent of the currency in question, according to the table published monthly by the Bank of Mexico during the first week of the month immediately following the month to which it corresponds.
D) Determination of Contributions and the Order of Their Payment
When contributions have been determined by the tax authorities in the exercise of their verification powers, or by the return of checks presented as payment, the payments made by those liable shall be applied to the oldest credits, as appropriate, for each contribution, and before the principal debt, to the accessory debts in the following order:
I.- Execution costs.
II.- Surcharges.
III.- Fines.
IV.- The compensation referred to in subsection B) of this section.
Finally, when the tax authority has determined the tax liability and the taxpayer files a legal defense challenging any of the items indicated in the preceding paragraph, the order indicated therein shall not apply to the contested and secured item.
E) Partial and Coercive Collection
When the taxpayer has paid the outstanding debt and the surcharges paid are less than the legally applicable amount, the competent authorities shall proceed to demand, through a reasoned and justified resolution, the unpaid balance. The debtor must pay the remaining amount within 15 days after the notification of said resolution takes effect.
In these cases, once the deadline for the taxpayer to make the corresponding payment has expired, the outstanding amount shall be updated if they fail to do so. This shall be carried out from the date on which payment of the unpaid and required amount should have been made until the date on which it is actually made. Payment of the amount owed for these items will be enforceable through the administrative enforcement procedure under the terms provided in the Tax Code of the State of Chihuahua.
18) Tax Liability
A) Concept
Tax liabilities are those amounts that the state of Chihuahua is entitled to collect from contributions and their accessories or from profits, including those arising from liabilities that the State is entitled to demand from its officials or employees or private individuals, as well as those to which the laws grant such status and to which the state of Chihuahua is entitled to collect on behalf of others.
B) Stale of the Tax Liability
The tax liability expires by prescription within 5 years, and the calculation of the prescription period begins from the date on which payment of the determined tax liability could have been legally demanded.
The period for the prescription to operate is interrupted by each collection action that the creditor informs the debtor of, or by the express or tacit acknowledgment by the debtor of the existence of the liability, when either is carried out within the period indicated here.
Likewise, the statute of limitations period is interrupted by preparing a report stating the factual circumstances that prevented the performance of the diligence, provided that the formalities established by the State of Chihuahua Tax Code for the performance of tax notifications are complied with.
C) What Is Understood By Debt Collection?
A debt collection is considered to be any action by the tax authority made known to the debtor within the administrative enforcement procedure, and in the case of the return of undue payments by taxpayers, any request duly submitted to the tax authorities requesting it.
D) Suspension of the Tax Statute of Limitations
The statute of limitations period shall be suspended when the authority is unable to perform collection actions due to the suspension of the administrative enforcement procedure under the provisions of Article 176 of the Tax Code of the State of Chihuahua[2], or when the resolution determining the tax credit is not enforceable under the terms of the aforementioned article.
Likewise, the statute of limitations shall be suspended when the taxpayer has vacated their tax domicile without filing the corresponding change notice, when their tax domicile has been incorrectly indicated, or when the taxpayer or their legal representative cannot be located at the address provided.
E) Limit on the Tax Statute of Limitations
The statute of limitations period, in no case, including when it has been interrupted, may exceed 10 years from the date the tax liability could have been legally claimed. This period shall not include periods during which the tax liability was suspended for the reasons mentioned above.
F) How Does the Statute of Limitations Apply?
The declaration of the statute of limitations for tax liabilities may be made ex officio by the tax collection authority or at the taxpayer’s request. If the authority makes the ex officio declaration of the statute of limitations, it shall take the corresponding measures for the administrative cancellation of tax liability declared as time-barred in the public accounts.
G) Cancellation of Tax Liabilities
The Ministry of Finance of the State of Chihuahua may order the administrative cancellation of tax liabilities in public accounts due to unprofitability in collection or insolvency of the debtor and those jointly liable.
Tax liabilities are considered unprofitable when their amount is less than or equal to the equivalent in national currency of 200 Investment Units calculated as of December 31 of the fiscal year immediately preceding the date of determination of unprofitability; as well as those whose recovery cost is equal to or greater than their amount, and those whose amount is less than or equal to the equivalent in national currency of $80,000 (EIGHTY THOUSAND 00/100 NATIONAL CURRENCY) and whose recovery cost, in the judgment of the tax authority, exceeds 75% of the amount of the credit.
On the other hand, debtors or those jointly liable are considered insolvent when they do not have sufficient seizable assets to cover the debt.
In addition to the above, cancellation shall be applicable in the event of the death of a debtor who has left no assets, and the corresponding notifications have been filed with the State Taxpayer Registry.
H) Partial Forgiveness of Tax Liabilities
For taxpayers subject to bankruptcy proceedings, the Chihuahua State Treasury Department shall be empowered, at its discretion, to partially forgive tax liabilities related to contributions that should have been paid before the date the bankruptcy proceedings begin, provided that the merchant has entered into an agreement with its creditors under the terms of the respective law and by the following:
I.- When the amount of the tax liabilities represents less than 60% of the total credits recognized in the bankruptcy proceedings, the forgiveness will not exceed the minimum benefit granted by creditors who, while not being related parties under federal tax legislation, collectively represent at least 50% of the amount recognized to non-tax creditors.
II.- When the amount of tax liabilities represents more than 60% of the total credits recognized in the bankruptcy proceedings, the forgiveness will not exceed the amount corresponding to the additional contributions owed.
Furthermore, the Ministry of Finance of the State of Chihuahua may, at its discretion, partially forgive tax liabilities related to contributions that should have been paid before the date the bankruptcy proceedings begin, once the merchant in question has entered into an agreement with its creditors in accordance with the terms of the respective law.
I) Extinction of Tax Liabilities of Public Bodies
In the case of tax liabilities held by any parastatal entity of the public administration of the state of Chihuahua that is in the process of being extinguished or liquidated, as well as by any company, association, or trust in which, without being a parastatal entity, the state government or one or more entities of the parastatal public administration, jointly or separately, contribute all of the assets or own all of the securities representing the capital stock that is in the process of being liquidated or extinguished, said credits shall be extinguished by operation of law, without the need for any authorization.
For the above to be admissible, the parastatal entity must declare that it does not hold any assets with which it is possible to execute the total or partial collection of the credits, excluding those that are affected by real guarantee to the payment of obligations before the federal or municipal treasuries of the state of Chihuahua, which are firm and which are preferential to the state tax authorities in terms of the provisions of the Fiscal Code of the State of Chihuahua.
19) Revenue
To cover public expenses and other obligations, the state of Chihuahua shall receive, in each fiscal year, the revenue established in the State Revenue Law. Only by law may a contribution be allocated to a specific public expenditure.
However, among the revenues the state of Chihuahua obtains with its taxing power are taxes, duties, and improvement contributions. I recommend reading my post Contributions Contemplated in Mexico for a better understanding.
That’s not all. Another «ordinary» revenue that the state of Chihuahua receives comes from federal contributions and contributions from the National Fiscal Coordination System and the Fiscal Coordination Law, which I will explain in subsequent posts.
For now, participations and contributions should be understood as those resources received by the state of Chihuahua and its municipalities from the Federation, including those received and allocated to the execution of federal and state programs through the federal entities through the reallocation of responsibilities and budgetary resources, under the terms of the agreements entered into.
By Omar Gómez
Mexican Tax, Administrative, and Constitutional Attorney
Partner at belegalabogados.mx
[1] Article 112.- The powers of the tax authorities to assess omitted contributions or benefits and their accessories, as well as to impose sanctions for violations of tax provisions, expire and therefore expire within a period of five years counted from the day following the date on which:
I.- A return or notice corresponding to a contribution that is not calculated by fiscal year or from the date on which the contributions were accrued was filed or should have been filed.
When there is no obligation to pay them through a return, when supplementary returns are filed, the period shall be computed from the day following the date on which they are filed, with respect to the modified items in relation to the last return for that same tax.
II.- A violation of the tax provisions has been committed; however, if the violation is ongoing or continuous, the term shall run from the day following the date on which the consummation ceased or the last conduct or act occurred, respectively.
An infringement is considered continuous when, by virtue of a single act committed by the offender, a tax regulation is violated throughout the entire period in which the infringement is deemed to exist, without the conduct changing; and it is considered continuous when, through multiple acts or omissions, a single tax provision is violated to the detriment of the same tax authority, and only one penalty should be imposed.
[2] Article 176.- Administrative acts shall not be executed when the tax interest is guaranteed in compliance with the requirements established in this Code; nor shall the act determining a tax liability be executed until the deadline established by law for its compliance expires. If, after the initiation of the administrative enforcement procedure and when a seizure has already been levied on the debtor’s assets, the taxpayer guarantees the tax liability owed under the terms of this Code, at the request of the taxpayer, the corresponding seizure may be lifted.
The taxpayer is released from the obligation to guarantee the tax interest when the taxpayer has filed a revocation appeal in a timely manner. The interested party must prove to the tax authority that it did so within the legally established deadline, in order to suspend the administrative enforcement procedure. If, after the revocation appeal is resolved, the obligation to pay remains, the debtor must pay or guarantee the tax liability under the terms of this Code within ten days following the date on which the notification of the respective resolution takes effect.
No additional security shall be required if sufficient assets have already been seized during the administrative enforcement proceedings to guarantee the tax interest, or if the taxpayer declares under penalty of perjury that these are the only assets he or she owns. If the authority proves by any means that this declaration is false, it may require additional security, without prejudice to any applicable penalties.
