Bye AFIP: taxpayers support spending cuts, although change in organization is “cosmetic”

As has already happened with other important measures, in the case of the dissolution of the Federal Public Revenue Administration (AFIP) The Government preferred to announce its decision before the public opinionand then publish the decree that formalizes the changes. One day after presidential spokesperson Manuel Adorni informed the press of President Javier Milei’s decision, it is unknown what the scope will be. In any case, the reactions were immediate, and the taxpayers gave their endorsement to the cutting of expenses and personnel in the organization.

The Government has to issue a decree that annuls a norm of equal rank from 1996 that created the AFIP and, in turn, create the Customs Collection and Control Agency (ARCA). Nevertheless, Tax experts and lawyers consulted by Ámbito agreed on a fundamental aspect of what has been announced so far: that a staff reduction is necessary.

The compelling argument they have in the Casa Rosada is that 99% of taxes are “self-assessed” by the taxpayer voluntarily. That is, it does not require an employee on the other side of the counter. Only 1% needs some supervision by the authorities to be fulfilled.

In other words, Those who are within the system with everything in order do not require many tax employees because they fulfill themselves. The problem, in any case, It is the black economy in Argentina that fluctuates between 33% and 35% depending on the times, but to solve it, it requires more than anything a structural tax policy and even a fiscal culture that exceeds the framework of an organization.

Dissolution of the AFIP: there are privileges for analysts

Diego Fraga, lawyer who advises companies on tax issues, points out that due to the way in which the Customs Collection and Control Agency was presented, “in principle it is a change of name and division of functions that, in fact, could be said to have already existed.”

“Even though DGI and Customs were unified, each one worked quite independently. In 1997 the savings banks had been unified by a request from the IMF (DGI, Customs and Social Security) to control them. In fact, they appointed Carlos Silvani as the first Federal Administrator, who came from the Fund precisely,” he explained.

Fraga opined that “There is a restructuring of the organization underway”. “They have between 21,000 and 24,000 employees (more than many multinational companies) and the highest salaries in the State. In return, Less than 1% enters through inspection actions. And the collection always varies depending on the economic cycle,” he explained. In other words, the lawyer considers that when AFIP collects more it does not do so because it is more efficient. “A change was necessary, clearly”he opined.

He also said that as in other organizations, “there are privileges”, among those he mentioned as an example “that a family member enters when an employee dies, the award of 20 gross salaries when they retire, and the same stimulus fund.”

Martin Caranta, of Lisiki, Litvin y Asociados, agrees with Fraga in the fact that Almost all national tax collection is carried out without the need for the intervention of personnel on the other side of the counter.

Caranta said Adorni’s announcement “for now it is a promise”, but he points out that “it is reasonable and is aligned with reducing State spending.” “Today AFIP has 22,000 employees. “99% of the collection is from voluntary compliance through self-declaration, so it seems to be an oversized organization,” he explained. The analyst maintains that “90% of the budget is taken by Human Resources while the computer systems are largely those of former administrator Alberto Abad with his first management.” The specialist also considers that currently Modern tax collection systems incorporate more technology and Artificial Intelligence and In that “you cannot be on the sidelines.”

For his part, Gabriel Hermida, from the Auren studio said that the announcement is “limited to President Javier Milei’s policy of continuing to reduce public spending”. “The Government is ‘combing’ everywhere to define the number of people necessary,” he added. Hermida maintains that from what has been announced so far it is “a cosmetic change” which would be limited to the name. “The aim is to eliminate more of the management and leadership issues. “It is a plan that has been on the table for a long time and what had to be found was the time to execute it.”he deepened. The professional maintained that “from the point of view of everyday life, it doesn’t change much, be it AFIP, ARCA or whatever it’s called.”

Chau AFIP: a change to cut jobs

The Minister of DeregulationFederico Sturzenegger, publicly acknowledged that the idea of ​​changing the name essentially pursues the objective of reducing expenses.

They are expected to reduce by 45% for higher positions and 31% for lower positions. In total, 34% of the structure’s public positions will be eliminated and it is expected eliminate 3,100 jobs that were designated during Alberto Fernández’s administration.

“We are in a process of rationalization of the State, we have said millions of times that every expense that the Government makes is a tax on the taxpayer that has to be paid either in inflation tax or in taxes. Every reduction in expenses is a relief,” he said. the official in radio statements.