Santiago Saenz, tax accountant and director of Santiago Sáenz Valiente y Asociados, explains to Ambit that, for the previous laundering, the law established that for any property in the country or abroad, “taxed 5%. In addition, for any good that exceeds 800,000 pesos, that percentage of 5% was extended to 10%. And from a late declaration, as now, the rate reached up to 15% in all cases.”
Laundering, product of an agreement with the US.
The proposal promoted by Massa arises as a result of an agreement signed in December between Argentina and the United States, which establishes a tax information exchange system between both countries, facilitating access to citizens’ financial data in a joint effort to combat tax evasion.
However, regarding the reasons behind the measure, Saenz Valiente added the fact that, despite the advances in the matter, “undeclared and anonymous funds that escape the tax radar” persist. The intention is bring to light this financial opacity, imposing a special tax. However, the expert believes that this approach has certain advantages that could be considered excessive, since those who keep their financial affairs in order “do not receive any preferential treatment”.
That and other points, as Heller pointed out, will be put to a vote in the venue. And he noted that one of the amendments will clarify that family members may not be included in money launderingunlike what occurred during the administration of Macri.
The government project proposes a laundering process that would be applied to individuals, undivided estates and companies with financial assets and assets not declared before the tax authorities. Those who register in the first 120 days from the entry into force of the project will pay a rate of 5%. Subsequently, during the following four months, the assets detected abroad and not declared will be subject to a rate of 10%. After that period, the rate will increase to 20% until the end of the law’s 360-day period.
In addition, a simplified regime will be established with a special rate of 1.5% for people who declare possession of national or foreign currencyas long as the amount does not exceed 35% of the average annual income of the last three fiscal periods, with a cap of up to $50,000.
Laundering: the government’s goal
To access this regime, it will be necessary to present a purely informative sworn statement detailing the amount of externalized assets. The bill also defines the repatriation of assets as the entry into the country of holdings in foreign currency and income generated by financial assets, representing a minimum percentage of the total value of assets declared abroad, established at least 10%, between other provisions.
According to the calculations of the portfolio of Massaincome from money laundering could reach the u$s1,000 million in the remainder of 2023. However, that projection is reduced as time passes and it is not approved in the short term.
Sáenz Valiente explains that these funds that remain off the radar of the treasury could have “an illicit origin, or simply be related to undeclared sales and services“, so special attention must be paid to their traceability. And, on the other hand, he warns that, while the collection and strengthening of state revenues are pursued, it must be taken into account that, in the long term, this measure too could erode income, as people could get used to being able to regularize their hidden assets.
This would have a negative impact on the future collection of the State. Therefore, the expert considers that it is essential to address this issue comprehensivelyestablishing a solid tax structure that complies with constitutional principles.
It also highlights the special simplified regime of this project for people registered in the monotributewho will be able to join to laundering with an amount with the cap 3% of annual income of the last three years declared and with a limit of up to US$50,000 total income. “In these cases, an extremely low rate of 1.5% is set and whatever the moment of fostering these subjects,” warns the expert.
Money laundering: Who will be able to take advantage of the measure
According to what has been reported, they will be able to enter individuals, undivided estates and companies with assets and financial assets not declared before the treasury with an ascending aliquot as the terms run.
Money laundering: the assets that could enter
- possession of national and/or foreign currency in the country.
- possession of foreign currency abroad.
- Financial assets of the country or abroad, understanding as such: shares, representative securities and certificates of deposit of shares and other securities, quotas and social participations -including quotas of common investment funds and certificates of participation of financial trusts and any other right over trusts and similar contracts-, crypto assets, cryptocurrencies, digital currencies or similar instruments, titles, bonds and other securities and all kinds of rights both from the country and abroad, capable of economic value.
- Real estate in the country and/or abroad.
- Other goods in the country and/or abroad, including credits.
Laundering, under the magnifying glass of analysts
for the economist Natalia Motyl, the entry project “is ambitious”. explains the director of NM Consultant that in a context of “a lot of uncertainty” and without “a forecast of what may happen in the future”, it is more than “difficult” to specify. However, he stresses that it means “an opportunity” for the government to earn foreign currency, which it urgently needs, and compares it with that of the Macri era, which was “quite successful at the time, so it can what willGet the necessary dollars that are urgently needed by the exchange market today“.
Frederick Glusteinan economist, maintains that the project of Whitening At this point it is “timeless” and it is “desperate”, in addition, it reveals the “clear inclination to collect foreign currency”. Likewise, he estimates that the amount to which the Government aspires “is going to be difficult to reach”, but it is “possible that it will achieve it because the needs, especially of small and medium-sized companies, require an injection of funds.”
Camilo Tiscornia, from C&T Consultores, indicates that, first of all, it is “very complicated” for the Government to obtain “political support at this time for a measure like that.” And secondly, “it’s hard to think who would enter a defined bleaching under those conditions.”
Source: Ambito
