In Argentina a A large number of economic operations are carried out outside the systemThere are two reasons that drive these maneuvers: inefficient state control and increasing tax pressure.
The combination of these two factors makes the reward for evasion increasingly larger and the risk of obtaining that “gain” small. And, as if that were not enough, Whitewashing allows them to wipe the slate clean from time to time.
This government is no exception. Without reducing taxes, it has managed to approve a tax amnesty that allows non-payers to declare money at zero or very low cost.
Cash laundering is the option that should be chosen by those who have not invoiced sales transactions, since if the amounts declared are less than US$100,000 they will not pay the special tax.
Another key is that this deductible is considered different from other assets. Thus, if a person has undeclared property of US$90,000 and US$50,000 in cash, they will not pay any fine either.
This is because There are two levels of US$100,000: one for cash laundering and another for any other asset (real estate, stocks, bonds, cryptocurrencies in Argentina, etc.).
There is also another important point to consider. When it comes to money laundering, the cost of externalization can also be zero if the funds are kept on deposit until December 31, 2025.
But there is more: there is the possibility of investing that money and earning an income. The operations that allow this are those approved by the Ministry of Economy, which include the purchase of bonds or investments in real estate projects.
The detail is that, even if the person decides to withdraw the funds before that date (December 31, 2025), he or she would only have to pay 5% as a special tax.
One thing to keep in mind is that, to adhere to the money laundering policy, it is enough to deposit the money in the special account (in banks or ALyC). That is: no affidavit is required.
Likewise, if funds are withdrawn before December 31, 2025, the bank or financial institution will be responsible for withholding 5% as a special tax.
A turning point
Beyond the advantages that exist and the results that money laundering produces, the truth is that, Just as for taxpayers who are starting from scratch, this must be the opportunity for the Government to “shuffle and deal” again in tax matters.
It has been said that increasing tax pressure only increases the reward for evaders. Therefore, in order to reverse this situation It is time to lower taxes and simplify the tax system.
Ireland understood this a few years ago and managed to capture everyone’s attention (and investments). It improved its economy thanks to the elimination and reduction of its taxes.
In Argentina, the ability to contribute is no longer respected when creating new taxes. The Aporte Solidario y Extraordinario, a property tax hidden behind a misleading name, is one of the latest examples.
But since tax amnesties serve to bring money obtained through illegal operations into the legal system without paying taxes (or paying very little), it is time to implement a comprehensive reform.
Taxes such as bank debits and credits must be eliminated (which reached the subsidies granted to employees in the midst of the pandemic) or Export Duties.
It is also necessary to simplify the system by using new technologies. In a world where operations are digital, everything should be recorded. This would make things easier for both the person who has to pay and the person who has to control.
Ultimately, this whitewashing should be the turning point that allows the Government to implement a reform that will attract investments and not scare them away as has been the case until now.
* Partner and CEO of Expansion Holding
Source: Ambito
