Through the use of tax information agreements with third countries such as the United States (USA), the Federal Administration of Public Revenues (AFIP) found and intimidated 1,800 taxpayers who either did not declare their assets abroad in the Income Tax or avoided declarations of Personal Assets.
The automatic exchange of bank account information between Argentina and certain countries with which the AFIP allowed to detect the evaders who together omitted the payment of 4,919,001,432 pesos equivalent to US$ 82,409,137 during the 2019 fiscal period and some US$ 26,481,044 in the 2020 fiscal year in front of collecting entity.
1,800 were the individuals who had differences between the account balance reported abroad and the one declared before the AFIP for more than 100 million pesos. The cases of balances of less than 100 million pesos and differences between payments received abroad and, again, what was reported to the collection entity.
According to what was reported in an AFIP statement, “the tools of AFIP made it possible to identify inconsistencies between the account balances or financial holdings and the corresponding interest, dividends and reimbursements received abroad, with respect to the sworn statements presented”. And they added that “these inspection and control tasks respond to decisions of the agency (…) to reinforce tax revenue from the sector of the population with greater purchasing power.”
The information exchange agreement with the US
On December 5, Economy Minister Sergio Massa together with Ambassador Marc R. Stanley signed a Intergovernmental Agreement to apply the Foreign Account Tax Compliance Law (FATCA).
This is the type of international agreements that allowed the Argentine tax agency to track down high-income tax evaders with accounts abroad. Likewise, the US is also expected to take advantage of the treaty to find its own evaders. Currently, the North American country has 113 FACTA agreements around the world.
