Custom officials at Puerto Vallarta International Airport (PVR) in Jalisco arrested a Canadian tourist after he was found carrying a large sum of cash and undeclared checks.
According to the federal Attorney General’s Office, officials seized two checks worth a total of $148,000, as well as $3,500 and 30,260 pesos in cash. It was not specified whether the dollars were Canadian or another currency.
In total, the detained man identified as Jerry “A,” was carrying over US $30,000.
Mexican law says that when entering or leaving the country, people carrying amounts of cash, national or foreign checks, money orders or any other document receivable or a combination of these, whose value exceeds US $10,000, are required to declare the amount to the customs authorities. Failure to do so will carry a fine of 20% to 40% of the amount allowed.
If the undeclared amount is greater than US $30,000, punishment can range from three months to six years in prison or five to 15 years in prison, depending on whether the resources are of legal or illegal origin.
Jerry “A” was handed over to the Federal Attorney General’s Office, which in turn referred him to a specialized judge. The judge ruled the arrest legal and ordered him to be subject to trial, the Attorney General’s Office said on Jan. 3.
As a precautionary measure, the accused will remain in prison during the trial at the Preventive Prison Precinct in Puente Grande, Jalisco.
Jerry “A” isn’t the only international traveler to get in trouble at the Puerto Vallarta airport recently. In December l, customs officials at PVR deported a Czech family after immigration authorities said they failed to comply with the requirements to enter the country.
“Their failure to comply with the requirements to enter the country is based on various sections of the Immigration Law and its regulations, which were recorded in their rejection report,” according to an INM statement reviewed by Milenio newspaper.
In an interview with Milenio, Robert Svecová, who was traveling for the holidays to Puerto Vallarta with his wife and two kids, said that they were mistreated by the National Guard, who wouldn’t speak English, and were never told the reason for their deportation.
The National Migration Institute (INM) told Milenio that the family failed to prove their lodging during the 10-day-holiday they said they had booked.
With reports from Milenio and El Informador
how about the 1000’s of Canadians and Americans who rent their condos,and houses and NEVER. pay the taxes on this???
Not sure what you mean. I pay my property taxes when they are due. In addition to all the taxes when I spend my $$$ in Mexico and on my Mexican investments
I believe Robert means the rental income. I know there are foreign renters everywhere where the owner of the property is subject to the “hospitality” tax but do not pay. Vacation rental platforms deduct the tax, but on long term rentals, I bet 99% of owners do not pay the tax on the monthly rental income. Is that what you were referring to Robert?
I believe that Robert refers to unpaid emuluments and perquisites deriving from your service as “a friend of The Cartel.” Saludos desde Acapulco.
How about the 40% of the “informal” Mexican economy that isn’t taxed?!
Robert Corkrum I’m not sure what your talking about but you have this wrong. Foreign investors pay large fees every year to be legal and maintain their license, accountant fees and garbage pickup etc not to mention the taxes. Then you have inspections of the gas and electric. Fire retardant for any palapas and extinguishers all at a price $. Signage, emergence lighting and smoke detectors. CPR training and maintain first-aid boxes. This takes 7 to 9 months to complete and then you get to start again the first of the year. These businesses intern generate thousands and thousands of dollars for the locales in the community.
Robert Corkrum, totally agree with you. Maybe a few people who are considered non residents of Canada for tax purposes may pay taxes on their rental income, but the majority of people I know don’t. They don’t declare it on their Canadian Tax Return either…..
.. arriving at an airport with $100K cash in a suitcase?? A huge risk..this guy wasn’t too smart, he coulda opened a bank account here and slowly sent the money down over time.. these days that kind of money is no kings ransom.. in investment circles just pocket change. He’s gonna lose it now and maybe spend some time in the slammer with Bubba.
…taxes and tax reporting… little wonder many, if not most transactions are done with cash.
Margaret and Robert i’m guessing your talking about areas in the western part of Mexico probably the Chapala Jalisco area. I can not speak for that area. I have friends from Canada and the States all owner operators of properties in different areas of the Yucatan. They are all on the uppity up and go to great lengths to abide by the requirements stated in my previous comment. All of them adding to, benefiting and bettering the communities that they have lived in on and off for many years. The Mexican nationals by far out weigh foreigners as the ones working off the books and as far as i am concerned thats there business and none of mine. Sometimes people are quick to paint a large group of people with one broad stroke the brush based on a somewhat small sampling of what is happening just around them. Viva Mexico
Thank you for publishing news and information covering Mexico. I may never get back to your beautiful country but thanks to you I can visit for as long as I can continue to read.
Regards,
Bette Laderoute
Anyone renting property in Mexico whether short term or long term are subject to paying the 3% hospitality tax, income tax to both State and Federal authorities and collection and submittal of the 16% IVA. The rental agencies like AirBnB, VRBO, etc are only collecting and submitting a portion of this, but not all of it. You need to get an accountant and file your income bi-monthly.