The Federal Administration of Public Revenues (AFIP) enrolled ex officio as a taxpayer to a foreign mining company installed in Chile.
It had to lift by court order the dump where it had deposited 40 million tons of waste but on the Argentine side.
The body led by Carlos Castagneto began an audit of the firm for failing to act as a withholding agent for Value Added Tax (VAT) and income tax for payments for services to subcontracted companies to comply with the precautionary measure.
The amount claimed would allow the collection of 6,000 million pesos for both taxes.
The foreign company installed in the bordering country, a few kilometers from the border with San Juan, created the material dump in Argentine territory, into which it dumped around 40 million tons of mining waste.
Once the irregular fact is detected, The Argentine Federal Justice issued a precautionary order that forced the foreign company to remedy the damage, and ordered its immediate removal.
For its part, after an investigation of the facts related to the judicial ruling on mining waste and environmental remediation, The AFIP concluded that the dump assembled by the foreign company constitutes a Permanent Establishment in the country according to Argentine legislation and interpretation of International Tax Agreements.
Therefore, this Permanent Establishment had to act as a withholding agent for VAT and Earnings with respect to payments made to subcontracted companies for the execution of tasks to comply with the court order.
Since the cost of executing the debris removal tasks would have amounted to 160 million dollars, the specialized areas of the AFIP estimate a collection of 6,000 million pesos between the Value Added Tax and the Income Tax that the firm omitted retain in the payment of the services of the subcontracted companies.
Source: Ambito
