On 1 June 2018, Mexico published a law in the Official Gazette that includes measure to allow the tax authority, in certain cases, to automatically assume a transfer of net operating losses was unlawful in relation to a restructure, merger, or spinoff, or a change in ownership resulting in a taxpayer leaving a corporate group. The unlawful assumption may apply in six cases:
- The taxpayer incurs losses higher than its total assets within the first three years following the year of incorporatio…