Mexico’s main tax authority, the Tax Administration Service (SAT), is revolutionizing tax auditing through AI and transforming how the agency detects and prevents tax evasion
Key points:
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Technological transformation — SAT is modernizing its auditing with machine learning and graph analytics to detect fiscal risks and tax evasion networks.
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Greater operational demands — Taxpayers and accounting firms must adapt to faster, more precise reviews that will be driven by AI.
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Efficient and preventive auditing — AI enables SAT to anticipate irregularities, promote self-correction, and maintain effective tax collection at low cost.
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In 2024, Mexico’s tax authority, the Tax Administration Service (SAT), introduced its Master Plan, marking a new chapter in tax auditing. This plan includes the integration of technologies such as machine learning to identify high-risk taxpayers who potentially could be involved in illicit activities. The aim of the plan is to detect complex structures of tax evasion and avoidance through the analysis of transactional patterns and relationships among entities.
Additionally, the plan seeks to uncover inconsistencies in Digital Tax Receipts (CFDI) that may indicate simulated operations, smuggling, or the use of shell companies, thereby strengthening fiscal oversight and the prevention of financial crimes.
This approach relies on large-scale data analysis, with AI playing a central role. Through algorithms that learn from historical patterns, SAT aims to anticipate irregular behavior and act proactively. Indeed, this represents a profound shift in how tax auditing is understood and executed.
Although AI is a major innovation in the field, it’s not the starting point. Since 2020, SAT has been consolidating its four-pronged strategy, aimed at i) increasing collection efficiency; ii) reducing tax evasion; iii) combating corruption; and iv) improving taxpayer service. This strategy has supported the development of programs such as Compliance Monitoring, Deep Surveillance, and Coercive Collection, which have enabled the authority to act with greater precision and speed.
To better understand the scope of this transformation, certified public accountant Roberto Iván Colín Mosqueda, a member of the Mexican Institute of Public Accountants, shares his expert insights on how these tools are redefining tax auditing and what they mean for taxpayers and professionals in the field.
The role of advanced analytics
SAT’s 2024 Master Plan places special emphasis on machine learning to strengthen auditing. This approach is divided into two main models:
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- Analytical techniques, which allow the review of large volumes of data from CFDIs, tax returns, and audit reports. The goal of this is to detect irregularities in real time, especially in sensitive sectors like fuel distribution, where illegal trade and irregular commercialization are targeted.
- Statistical learning models, which enable AI to identify previously detected tax evasion patterns and apply them to uncover new networks or similar schemes. This model is particularly useful for identifying operations linked to fake invoicing companies or importers engaged in irregular practices.
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The combination of these models allows SAT not only to react to non-compliance but to anticipate it, resulting in smarter, less invasive, and more resource-efficient auditing.
“The authority has been closing gaps and tightening controls, and the reality is that electronic invoicing now provides highly reliable information,” explains Colín. “Based on this, along with tax returns and other data it receives, SAT can implement artificial intelligence to develop analytical and statistical learning models that will undoubtedly continue to deliver strong results.”
Direct impact on taxpayers & accounting firms
SAT’s technological transformation doesn’t only affect large taxpayers or strategic sectors. It also has direct implications for ordinary taxpayers and the accounting firms that support them.
Indeed, Colín warns that this new auditing will be more dynamic and demanding. “In the daily life of a regular taxpayer, this will mean increased auditing,” he says. “The authority will detect non-compliance and omissions more quickly, which will generate more work for both taxpayers and accountants, who will need to constantly review and correct.”
Additionally, accounting firms must adapt to a more sophisticated auditing process that goes beyond numbers to better analyze relationships between data, behavioral patterns, and connections among taxpayers. This implies greater responsibility in validating transactions, ensuring consistency in reported information, and maintaining traceability of digital tax receipts.
“These analytical techniques will allow the authority to detect irregularities more quickly. Today we already see reminders before a tax declaration is due, and invitation letters requesting explanations. With artificial intelligence, this pace will intensify,” Colín adds.
Efficient collection and preventive auditing
One of SAT’s most notable achievements is its operational efficiency. Currently, for every 100 pesos collected, the authority spends only 28 cents, compared with the United States’ Internal Revenue Service (IRS) which spends 34 cents for every 100 dollars collected. This figure reflects a modern fiscal management model based on the strategic use of technology to maximize results with limited resources.
Preventive auditing, supported by AI, allows SAT to expand its coverage without significantly increasing its operational structure. By detecting irregularities before they become serious omissions, it encourages taxpayer self-correction, reducing the need for formal audits and improving voluntary compliance.
This proactive approach not only optimizes government resources but also fosters a more transparent and collaborative relationship between the authority and taxpayers.
Preparing for the future of tax compliance
SAT’s technological evolution presents new challenges for all actors in the tax system. For taxpayers, it means maintaining more rigorous accounting, staying alert to messages in the tax mailbox, and responding quickly to any requests. For accounting firms, it’s an opportunity to strengthen their services, adopt analytical tools, and provide more strategic advice to their clients.
Smart auditing works to move revenue services beyond enforcement, enhancing the ability of auditors to prevent, educate, and collaborate. In this new environment, transparency, traceability, and cooperation will be key to building a fairer, more modern, and efficient tax system in Mexico.
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