It is worth remembering that since the reestablishment of the application of the adjustment for tax inflation, its imputation was made in installments. First in thirds and then in sixths for two years from December 2019.
In the treasury’s view, the extension of the quota mechanism has two reasons: first, raises revenue. This because he understands that there are more companies that have losses due to inflation than those that make a profit. So, in the total universe, there is a net loss that, instead of being deducted in one year, would be deducted in three years at face value. Second, it promotes investment and the generation of job.
In the The 2023 Budget project, on page 324, details the benefits not included in the articles that would generate an increase in revenue for the National State. And there it is dimensioned that, due to the non-deferral in installments of the adjustment for tax inflation, the treasury would stop collecting about $237 billion. Obviously, this lower collection also It will have an impact on the provinces that will be affected by less co-participation, the specialists agree.
The financial sector is the main party interested in the adjustment for inflation being fully applied in a single year, which is why it activated its influence over the deputies so that the system of application in installments is not extended, say tax experts.
This situation not only affects the treasury and the provinces, but also the energy sector, specialists comment. Capital-intensive industries, with capital structures in dollars, are characterized by making large, long-term, high-risk investments that require access to internal and external financing.
The magnitude of such investments depends on various factors, including the tax impact.
Tax experts consulted affirm that “In a context of an increase in the corporate rate of income tax to 35% for the period 2021, it would be reasonable to extend the allocation mechanism in installments to mitigate the negative tax effects derived from the financing of the investment and, in this way, encourage an increase in it with its virtuous correlate in terms of competitiveness and job creation”.
If the imputation of the adjustment for inflation in installments is not applied, legislative sources affirmed that “investments in Vaca Muerta could be lost to be used to pay profits.”
“Unconstitutional”
For Vanesa Díaz, Tax Senior at Expansion Holding, the project to implement the adjustment for partial inflation “is synonymous with unconstitutionality.” “Not only is it something very bad for the tax system, but it goes against what the Supreme Court said on repeated occasions”plot.
“This is nothing more than a desperate attempt by the Government to seek to increase collection without measuring the impact that a decision of this style can generate in a company, above all, by affecting SMEs that do not usually have the tools to question a rule that violates the National Constitution”he claimed.
In that sense, Díaz warned that “any limitation for the application of the adjustment for inflation goes against the fundamental law because it transforms the tax into confiscatory, by taxing non-existent profits.”
And he concluded: “It is a mere device so that some companies without adequate advice tax above their taxable capacity and beyond the formal rates established by the Income Tax.”
Source: Ambito
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