Axel Kicillof will ask 254 companies to pay almost 640 million pesos in the concept of prepayment of gross income tax. The governor is trying to alleviate the effects of the strong cut in transfers that Javier Milei’s government applied to remittances of national funds that – until December 2023 – the Province received almost automatically.
Automotive, hypermarkets, banks, cereal companies, mining companies and other companies with a turnover of millions appear on the list chosen by the collection agency for this tax advance which brings the greatest resources to the coffers of Buenos Aires.
It is expected that the amount borne by these taxpayers will be equivalent to four times the amount of the advance of the gross income corresponding to October 2023. For those who have not submitted a sworn declaration or tax return in that month, the additional amount will be calculated multiplying the amount of the last non-prescribed advance by fourincreased by 70%, it was reported.
Buenos Aires intends to face a period of restrictions promoted by Milei, without cutting costs. Or at least this is what Kicillof promotes, as part of his policy of differentiating himself from libertarians. The latest cut that the libertarian administration has applied to pruning 870 billion pesos of the Fiscal Strengthening Fund that would have entered the Buenos Aires Treasury in 2024 if that program had continued, suspended by decree 192/2024, less than a week ago.
“The resources of the provinces are being stolen,” accused the governor, siding with the leaders who supported the position of Ignacio Torres of Chubut, who ended up in court with a complaint for the mutilation of 13.5 billion pesos that he should have received from Co -participation.
The provincial governor calls on his fiscal resources to replace Frart of revenue that stops receiving from the Nation. It seems like a short route: The extra payment of gross income is an advance that will come later it will not enter in the next few months. But it needs new resources to face a year that is expected to be one of extreme financial drought.
Liquidation is expected 8th of March and the authorities hope to collect 152,560 million pesos. Covers companies located in the Province or other jurisdictions, but with activities in the territory of Buenos Aires that meet these requirements: high volume of annual turnover and concentration in the activity carried out.
The IIBB tax contributes 80% of the funds that Arba collects every monthS. It is an essential source for the provincial budget and is linked to general economic activity. The decline recorded every month due to the crisis is a warning for provincial collectors. In December, 311 billion entered Arba for this concept. Kicillof is now trying to raise half that amount with an advance to 254 companies.
“We are practicing a power conferred by the 2024 tax law, approved by the legislator in December last year, who, foreseeing that this could be a year of great uncertainty and financially complex, contemplated the possibility of providing a further advance on gross income”, explained the head of the Collection Agency of Buenos Aires (Arba ), Cristian Girard.
The official argument goes that it was defined to “apply to an extremely small universe.” They are registered in the Province two million CUIT active, therefore “the companies reached are just 1 in 10 thousand”. The methods for establishing who falls into the category and who does not are defined in Arba RN 11/2024.
This week notifications began to be sent to the people reached. “You are obliged to pay the additional advance tax…”. It arrived via email. Unpleasant surprise.
The decision provoked predictable reactions. “The struggle between the Provinces and the Nation has a rebound effect on the entire economy and with great force on the industry of Buenos Aires. Arba’s new provision, added to the increases in the real estate tax in the Province of Buenos Aires, affects the sector openly,” Martín Rappallini, president of the Industrial Union of Buenos Aires, told Clarín.
“These increases in provincial taxes or sudden duties, as we see now, added to the increases in municipal taxes and tariffs are an explosive combination that ends up fully impacting production. It directly affects the cost structure, in a context of falling “These are measures counterproductive in times of crisis”, complained the manager.
There are stronger repercussions. The national deputy, José Luis Espert, asked: “Tax rebellion now!!” in a social media post.
The government of Buenos Aires has authorized a tax adjustment of up to 200% for real estate and “patents” (Automotive). But due to the implementation of the new assessments and other variables, there are taxpayers who received the first tax installment in amounts up to four times higher than the last installment in 2023.
The IIBB advance regulation provides that “the existence of favorable balances will be discounted from the total amount to be paid and that the credit generated by the advance may be used to cancel advances that have expired or are to expire”. The compensation is collected through a sworn declaration or through “withholding” in the marketing of the products. For this reason, some companies may generate credit balances if a month’s billing fluctuates or is reduced and consumption remains unchanged.
Arba wants there to be no room for rebels. Those who do not comply with this payment will be included “in the most representative category of tax risk”. Furthermore, the debts corresponding to the additional advance, its interests, accessories and penalties cannot be regularized through the payment plans provided for by regulatory resolution 36/23.
“The economic recovery of our country must necessarily start from productive development with the creation of formal employment and the increase in fiscal pressure and/or the financial burden on the productive sector makes it difficult to achieve this objective”, warned the UIA .
The government faces several fronts to deal with the nation’s onslaught. In addition to the tax burden, he appealed for justice. He instructed the State Attorney, Hernán Gómez, to present a precautionary measure before the Supreme Court of Justice against the withdrawal of the special funds that he had received until last year.
La Plata (correspondent)
Source: Clarin
