Issue #
May 2011

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Use of the Advanced Electronic Signature (FIEL) in Transmittals Before the Mexican Social Security Institute

May 4, 2011

On May 4, 2011, the Technical Council of the Mexican Social Security Institute (Instituto Mexicano del SeguroSocial or IMSS) published Decree No. ACD0.SA3.HCT.270411/120.P.DIR in the Official Journal of the Federationin which such council approved the use of the Advanced Electronic Signature (Firma Electrónica Avanzada or FIEL)and its respective digital certificate, so that authorized public accountants may review compliance with employerobligations in Social Security matters, carry out corresponding transmittals regarding employer registrations, andpresent notices for the review and audit of Social Security matters before the IMSS. The cited Decree also approvesguidelines for the adoption of the FIEL issued by the Taxpayer Administration System (Administración Tributaria orSAT) of the Mexican Department of Treasury, in those electronic transmittals that authorize public accountants tocarry out matters before the IMSS. Overall, the approved guidelines establish that: 1) the FIEL replaces thehandwritten signature and certifies the validity of the document; 2) the IMSS will issue an electronic receipt notice,which will be the means of evidencing the filing; 3) authorized public accountants must advise the IMSS of anychanges in a company’s registration, subject to penalties including the revocation of the FIEL for failure to do so; 4)information provided remains the responsibility of those public accountants who utilize such; and, 5) a publicaccountant may at any time cancel the company’s FIEL registration before the IMSS.

Case Decision – Purchase and Sale with Reservation of Title. Equitable Title

May 4, 2011

Recently, the First Chamber of the Mexican Supreme Court of Justice (Suprema Corte de Justicia de la Nación orSCJN) met in private session to approve decision 1a./J.58/2010, titled “Purchase and sale with reservation of title. Thecontract constitutes equitable title to demonstrate possession of property in the capacity of an owner in order to asserta claim for adverse possession.” In such decision, the SCJN held that a purchase and sale agreement with reservationof title constitutes equitable title that allows a party to assert a claim for adverse possession “given that the purchaseris in possession of the property as an owner or titleholder and the possession is absolute and not derived.” Theforegoing applies notwithstanding the provisions in Mexico’s Federal Civil Code, in the sense that insofar as legaltitle has not been transferred to the purchaser, the purchaser will be considered a lessee since the payment ofcorresponding rent is intended to protect the seller in case of a rescission of the agreement.