Analysts point out that this visit is important as sign of support because it is estimated that the bulk of expatriate funds not declared by Argentines is in that country, because it has strict regulations that limit the treasury of that country from sharing information with other countries.
In the ruling party they hope that the project, which establishes a rate of 20% for those who externalize their capital (or 35% for those who do so after six months of its entry into force), will generate a mass of funds sufficient to to pay off debts to the IMF. “They are given a period of six months so that they can launder the evasion and pay the taxes that they must pay to the country. With this project, around US$70,000 million can be raised”said senator Juliana Di Tullio at Radio 10and indicated that “The spirit is to be paid by those who always benefit and not by the People.”
But, beyond the aspirations that the government has regarding the initiative, and if it manages to overcome the objections that the opposition will raise, would have to start a new negotiation with the IMF.
The chapter on “Fiscal Policy and Financing” of the memorandum maintains that in terms of tax administration “tax payment plans will continue to be necessary, but tax amnesties that could deteriorate tax compliance will be avoided.”
The point is moot and could enter into what the agency itself described as “recalibration” of policies required by the change in the global economic scenario. On the one hand, the Fund may be interested because it would be the direct beneficiary of that collection. For some analysts, the money laundering project could not be considered an amnesty based on the 20% rate that the taxpayer would have to pay, which in itself implies a strong punishment. In the same way that the use of moratoria would not be strictly prohibited, but must be “avoided”.
About, César Litvin, from the Lisiki, Litvin y Asociados law firm, considered that the project “it is a real whitewash” although it is presented as the creation of a fund to pay the debt with the IMF. “It goes against what was agreed” with the agency, he assured.
Tax experts have another objection, which is of a constitutional nature. In accordance with what the Magna Carta indicates, the Chamber of Senators cannot be the origin of projects that have to do with taxes. The initiator has to be the Chamber of Deputies.
so that it, if approved, it could be subject to legal challenges. “The roadmap started badly. They are going to have to change it”, stated Litivin.
On the other hand, the tax advisor maintains that the ruling party’s project would target more than anything the undeclared funds that are in United States banks because the Federal Administration of Public Revenues (AFIP) would already have the information from other jurisdictions to from the data exchange agreement entered into with different tax administrations within the framework of the Organization for Cooperation and Development (OECD), in which the North American organization does not participate. It is estimated that the bulk of the undeclared is found in that country. Argentina signed a bilateral agreement for the exchange of information with the Internal Revenue Service (IRS) in January of last year, although it would not yet be operational.
On your side, the lawyer specialized in tax matters Diego Fraga questioned the initiative by stating that “the Chamber of Senators cannot initiate” a law like the one proposed by Kirchnerism and clarifies that these types of regulations “must be initiated by the Chamber of Deputies.” While the taxpayer Guillermo Pérez, CEO of the GNP Group, said that the AFIP already has the tools to combat evasion so that “this could affect someone who could be frightened”. “As the effectiveness of this is going to be low, I think it is smoke for the tribune,” said the tax advisor.
Source: Ambito
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