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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10122
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I have a timeshare in Cabo a company touch base with me I

Customer Question

Hello I have a timeshare in Cabo a company touch base with me I signed a contract with them and the we're purchasing my timeshare they have there own escrow company after sending 2541.00 to sit in a escrow account .. then they came back and said I need to.pay 4389.00 for IVA tax and is tax but it would be refunding to me.after closing everything sitting in escrow.. is this real or is this a.scam it's a.property managment company base in Idiho and the title company in Colorado there using that they are a.A+ with the BBB
Need answers there blowing up my phone and wanting to close this deal .. making me.a bit crazy...
Lisa
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.

Hi,

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I hold a JD (Juris Doctorate, a doctoral degree in the law), concentration in Tax Law & Corporate law, an MBA (specialization in finance & tax), and BBA from Mercer University's Stetson School of Business and Economics, as well as CFP and CRPS designations. … I can help here

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Your intuition is good.

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THis appears to be one of MANY scams that misuse tax terms to get you to pay more in up front.

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They use such nonsense titles and terms as “Guaranteed Purchase/Sale/Escrow Contract.” No such thing exists. And the list of expenses to be paid is filled with phony codes and line items, too, like IVA taxes, which are never part of timeshare transactions.

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Here's and excellent artifle that discusses this whole arena.http://yucalandia.com/2014/02/14/scams-victimizing-owners-of-mexican-timeshare-properties/ by Lic. Spencer McMullin, a well respected Mexican attorney who serves expat community

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But asking you to pay taxes that will then refunded are a theme among all SORTS of scams ...." You've won the international sweeptakes but must send $5000 to cover taxes before we can release" was one that popped up just a couple of days ago.

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I would tread VERY carefully here

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Expert:  Lane replied 1 year ago.

This is such a major problem, the Mexico consumer protection department, called PROFECO has a whole governmental section for lodging, timeshare and transportation complaints.

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See this: http://www.timesharescam.com/blog/49-profeco-mexicos-consumer-protection-agency/

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This department is named C.A.R.E., Departamento de Conciliación a Residentes en el Extranjero. Many timeshare scam victims that have purchased timeshare contracts based on fraudulent promises are referred to resolve their disputes against the timeshare developer.

Expert:  Lane replied 1 year ago.

Based on (1) The HUGE problem that exists in this area, (2) The fact that they are usung the very familiar tactic of quoting real tax terms but in ways that they don't apply, and (3) The don't disclose all the fees at one time, then hard close aftery telling you yet another fee or upfront tax this is ba business at best and likey a scam.

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If you'd llike to give me specifics I can check it out for you, but again ... would not give another dime, and you may want to exercise the 5 day recisision rule for this and go more slowly. The ligitimate companies don't push this way and any real tax is charged at the end of the transaction...

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Hope this has helped

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Lane

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If this HAS helped, and you If you don't have additional questions on this, I would appreciate a positive rating (by clicking the stars on your screen) ... that's the only way I'll be credited with a portion of what you've paid JustAnswer.
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Lane

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Expert:  Lane replied 1 year ago.

Hi,

….

I'm just checking back in to see how things are going.

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Did my answer help?

…..

Please let me know if you need more here

And if not, I'd appreciate a positive rating (using the stars on your screen). That's the only way JustAnswer will credit me with a portion of what you've paid them.

Thank you,

Lane

.

Expert:  Lane replied 1 year ago.

Hi,

….

I'm just checking back in to see how things are going.

….

Did my answer help?

…..

Please let me know if you need more here

And if not, I'd appreciate a positive rating (using the stars on your screen). That's the only way JustAnswer will credit me with a portion of what you've paid them.

Thank you,

Lane

.

.