The seven keys to the agreement with the United States that have not yet clarified the doubts

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After the signing of the agreement between Argentina and the United States to exchange information on the accounts that Argentines have in that country, the inaccuracy continues to raise questions about the real extent of the agreement. These are the keys to what is yet to be defined

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the fine print

The regulations remain to be defined, where the missing clarifications will come from. From the official offices they assure it the settlement will be completed by 31 December, which will allow the agreement to enter into force from 1 January 2023.

If these steps are taken from that day, US banks will start calling their Argentine customers to ask them if that account is declared before the AFIP.

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what about companies

For Argentine officials, the deal covers account information for both individuals and businesses.

“The companies are made up of natural persons and to open the account you have to detail to the bank who the beneficiaries are behind each company. This is how it works in real life,” they say.

For some tax experts, the company’s accounts are outside this arrangement.

“The information I have is that the embassy has indicated that an IGA1 has been signed, in the case of companies it is only reported when they have only one member, but these are very special cases of a single type of transparent company, this is not the case of offshore companies, we will have to wait and see the text of the agreement that has been signed,” he said clarion tax specialist Sebastián Domínguez.

Data to report

If the account is not declared, US banks are required to inform Argentina of the account’s existence.

In particular, they must report the account number, the name of the account holder, the interests and income that have entered that account. Argentine officials say off the mic that they will also have to release account balances and movements.

For the tax expert César Litvin, this type of agreement can incorporate companies, but in the case of accounts it does not include balance disclosure.

“Until we have the agreement to read, what Massa said is not verifiable,” said Gabriel Hermida, tax partner at Auren Argentina.

The confidentiality of information

Specialists stress that the security of computer systems is fundamental to the agreement and that the agreement could fall if the United States detects irregularities.

“We will keep your information secure and work very hard to meet US security requirements so they have confidence in the system’s effectiveness,” the officials said.

When does it start to take effect?

The information from the banks will be given at the end of the fiscal year, so if the timing is respected, it will be available from September 30 next year. But the government assures that once the agreement enters into force, presumably on January 1, 2023, “we will already have access to that information”.

The September 30 deadline works for the Argentine government as an incentive for taxpayers who have undeclared accounts in the United States to enter the laundering promoted by Minister Sergio Massa in the coming months.

What will happen to bleaching

Massa confirmed that they will send a bill to the Chamber of Deputies – the mandatory path for tax issues – to open a new laundering. Those who engage in this laundering escape penalties for hiding their accounts from the exchequer.

But it is not yet known what the conditions of laundering are or if the ruling party has a real possibility that this project will be approved by the end of the year, in the midst of the tension that erupted last week with the screams that started in the session in which Cecilia Moreau was to be re-elected Speaker of the House.

How many undeclared dollars are there?

The government estimates that there are $100 billion not declared in the accounts of Argentines in the United States, but they don’t know how many taxpayers they correspond to.

If this data is confirmed, it will be necessary to see how many dollars will actually enter the tax authorities once the agreement has started.

AQ

Source: Clarin

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