Mexican Legal Framework of Business Insolvency - White & Case

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the lack of a definition of what constitutes an entrepreneurial activity, and in which
cases would a trust estate be deemed devoted to such entrepreneurial activity.
Unfortunately, the author knows of no binding precedent on the subject for purposes
of the Insolvency Law.
Tax laws regulate the concept of entrepreneurial activities [CFF 16] and the tax regime
applicable to trusts devoted to an entrepreneurial pursuit [LISR 13]. A simplistic route
of interpretation suggests that a trust is subject to the Insolvency Law if such trust is
taxed as a trust devoted to an entrepreneurial pursuit. However, this interpretation has
serious flaws since the tax laws do not constitute admissible secondary sources of
interpretation of the Insolvency Law [LCM 8]. 13 A correct legal interpretation requires
a more technically rigorous analysis.
Activity is defined as a set of operations or tasks of a person or entity, whereas
entrepreneurial is defined as belonging or pertaining to an enterprise. 14 That is, an
entrepreneurial activity could be defined as a set of operations or tasks of a person
or entity pertaining to an enterprise.
The concept of enterprise is at the heart of the concept of entrepreneurial activity.
A recent court precedent (and, as far as the author is aware, the only available
binding precedent on the subject) attempts to define enterprise but does so in a
very imprecise manner:
ENTERPRISE. ITS CONCEPT IN ANTITRUST MATTERS.
“The elucidation of the concept must consider, in a functional manner, and include, any
entity that exercises an economic activity, without regard to its legal status or legal nature;
therefore, if an entity does not exercise any economic activity, it is impossible to consider it as
an enterprise.”
13 In an unrelated matter (the dismissal of Vitro’s prepackaged concurso), the judge relied heavily on some concepts in
the tax laws to issue his ruling.
14
Real Academia de la Lengua.