Mexico Guns For Tax Dodgers

Ortiz said it was an affront to society that certain rich Mexicans did not pay taxes when less wealthy ones did. He urged Mexicans to see tax evaders as people stealing from the rest of society.

His strong message came shortly after Mexico launched a crackdown on tax evasion in response to a sharp drop in tax receipts after last year's economic crisis.

Arrest warrants have been issued for several high-profile businessmen and the government has launched an aggressive media ad campaign featuring a burning match and the slogan Don't Get Burned.

Tax evasion is widely seen as a sport in Mexico and people who do not pay are praised for accounting skills.

 

Newspaper magnate Juan Francisco Ealy Ortiz was the most prominent businessman to be caught in the crackdown. Ealy, who owns Mexico City's oldest daily newspaper, El Universal, is free on bail pending charges of tax fraud. Arrest warrants are out for three other businessmen.

Mexico plans to carry out 400,000 audits on companies and public servants this year, finance ministry spokesman Alejandro Valenzuela said.

Finance minister Ortiz said Mexico's tax collection levels were too low. Discounting tax receipts on items such as fuel sales, he said, tax inflows were not even 10 per cent of the country's gross domestic product (GDP).

But he gave no indication Mexico was about to change its tax rates: a 34 per cent income tax and a 15 per cent value added tax under which products are taxed according to value added at each level of production and exchange.

Mexican tax rates are not high, he said.