On May 16, a new bill called the “Outsourcing of Argentine Savings” was announced. money laundry sponsored by the Ministry of Economy.
This is version 2.0 of the anti-money laundering promoted by the minister Sergio Massa at the end of last year. The differences are minimal with that one and – for the most part – make it less appealing.
It is a large whitening, for all types of subjects residing in the country (human persons, undivided successions and companies, whether sole proprietorships or companies) and of the art all kinds of goodswith the exception of financial assets located in high-risk or non-cooperative countries, as identified by the FATF (International Financial Action Task Force).
THE duration scheme proposal is 360 dayswhile the previous project had a shorter duration (270 days).
The “cut-off” date, known as the pre-existence date of the assets, will depend on the type of subject adhering to the regime:
- Individuals and undivided estates: goods before the effective date.
- Stcountry company or sole proprietorship: assets prior to the end of the last financial year closed before the effective date.
In terms of tariffs, the main attraction of version 1.0, an increase is observed:
The previous regime was 2.5%, 5% and 7.5% for goods in the country and abroad with repatriation, the increase operated every 90 days. In the absence of repatriation, assets abroad had a 50% higher rate than those mentioned above (5%, 10% and 15% respectively).
As regards “repatriation,” there are two important developments that remain attractive. The Executive Power is delegated to establish the percentage of repatriationbased on a minimum of 10% of total goods recycled abroad, without setting an upper limit.
Also, it is expected that the repatriated funds are deposited in a special account or interested in certain destinations –which are not mentioned– according to the AFIP regulation, for a period from one (1) to five (5) years, as established by the same body.
There are no changes in terms of benefits, remembering that they are:
- The amount of the capital increase not justified by the declared assets does not apply.
- Release of all civil, commercial, tax, currency, customs and administrative sanctions.
- waiver of payment of the following taxes:
-Earnings, irregular departures, ITI, IDCB.
-Internal taxes and VAT
-Personal Assets and Capital of the Cooperatives.
As in the previous project, the disbursement of the Solidarity and Extraordinary Contribution is not envisaged (ASE) of law 27.605, which also makes it less attractive.
It insists that the declaration must be complete. Otherwise, the individual will be deprived of the benefits of the scheme. No margin of error was considered.
The declarant may not have the statute of limitations in his favour. That is, they must declare the non-outsourced goods and pay the special tax, even when he had acquired them in prescribed periods.
THE “simplified regime” of money launderingintended for natural persons and only for the holding of national and/or foreign currency, in cash, in the country, which must be deposited in a specific account.
The previous limits set at the equivalent of 35% per annum of the last 3 years’ median annual income reported prior to the AFIP or US$50,000, whichever is lower, are maintained. Who had no declared income in the last 3 years you must take the above amount as a limit. The special rate will be 1.5%. Subjects subject to the Solidarity and Extraordinary Contribution (ASE) of Law 27.605 are excluded from this regime.
As for the Inflation regulationsubjects who make use of the regime must first renounce the promotion of any judicial or administrative proceeding in order to demand the application of updating procedures of any kind for tax purposes. If they have already been promoted, they must desist.
AFIP will not file complaints due to the criminal tax lawnor the BCRA due to the criminal exchange law, etc.
As regards the “Collaboration Agreement”, which consists in the creation of the figure of “buchon payment”taken from another proposal by Senator Parrilli, the most relevant novelty – and positivea– is that this project is limited to the duration of the outsourcing scheme, i.e. 360 days.
On the other hand, the unoriginal idea of suspending for one year the statute of limitations for actions to determine or demand payment of taxes payable by the AFIP and of imposing sanctions in relation to these is maintained.
In our opinion there is no doubt the current economic and fiscal situation justifies a capital outsourcing system. However, to the proposal elements are missing very important.
The first of all is deal with the cause that generated the informality which is now intended to be “recycled”. Undoubtedly the phenomenon of tax evasion (consequence) is multi-causal (economic, financial, exchange rate aspects, etc.) but in tax matters the high tax burden it cannot be overlooked as it is done here. That means, remedy the consequence and overlook the cause it is not an effective plan.
Another issue is the purpose: since fiscal policy is part of economic policy, no element tending to mobilize the real economy is observed in this project.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.