A report from the prestigious British NGO Tax Justice Network (TJN) highlighted progress of Argentine government to avoid abusive maneuvers regarding the tax scheme of companies to be able to make transparent and meet the true owners of offshore accounts. “Argentina continues to advance to be at the forefront of transparency”, TJN experts indicated when highlighting a series of regulations implemented by AFIP over the last few months.
From the Federal Administration of Public Income (AFIP) They highlighted the importance of a publication made on the organization’s website, which is dedicated to combating abuses in the offshore world. There, the resolutions of the Argentine collection body that created a registry of the true owners of companies and a map on tax planning of the big corporations. According to British experts, government regulations « help put Argentina a step forward in terms of the availability of information by joining many countries of the European Union. »
According to the publication, TJN members claim that the information collected by the tax authority on the true owners of the companies (the so-called final beneficiaries) is public access. They also suggest improving coordination between the AFIP and the different provincial public registries to enhance the use of data to avoid abusive maneuvers.
« Argentina like the rest of the world must continue to face the damage inflicted by professional secrecy », warns TJN when questioning some of the arguments used by the opponents of the measures. “Although confidentiality makes sense in some cases (for example, to prevent a doctor from disclosing medical records or the right to a fair trial), it should not be used by the most powerful multinationals and people with high net worth to continue participating in abusive activities that erode state revenues, harming the vast majority of people who are not part of the 0.1% « , expressed the experts of the British NGO.
He Information Regime on Tax Planning created in October 2020 gave AFIP a tool to address potential tax avoidance and evasion maneuvers. As highlighted by the collecting body, informational regimes such as the one implemented by the AFIP constitute a widespread practice among tax administrations around the world since they allow to verify that taxes are entered in the jurisdictions where taxable events are actually perfected. By increasing the level of knowledge of the structures and operations used by taxpayers, the regulations allow identifying areas of fiscal risk and encouraging voluntary compliance.
« With this rule Argentina joins the 27 members of the European Union, Canada, Mexico, South Africa and the United States that already require taxpayers or financial advisers to report their tax schemes « , express from TJN when referring to the countries that require taxpayers to report the agreements, schemes, plans and actions used to obtain tax advantages or benefits in relation to any tax and / or information regime.
Offshore and tax havens
« He tax abuse by multinationals and individuals remains a Important problem that affects state revenues and the application of basic human rights ”, say the TJN experts. In their latest report on the State of Tax Justice in 2020, experts in the offshore world and the tax havens estimate that « countries are losing more of $ 427 billion in taxes each year due to abuse of international corporate taxes and tax evasion of private individuals. «
The AFIP, through a press release, highlighted that from TJN they list different reasons to “support the imposition of mandatory notification of tax evasion schemes ”. First, British experts say, “it helps tax administrations to identify gray areas in tax legislation that need to be clarified or legislative improvements, regulatory guidance or additional research ”.
Second, they add, “it provides the tax administration early information on tax evasion schemes which allows you assess the risks that raise the schemes before carrying out the tax assessment and focus the audits more efficiently ”. And, thirdly, they consider that “it is probable that require mandatory declaration of tax schemes deter taxpayers to use these schemes because they know that there is a greater chance that the files will be identified, exposed and evaluated ”.
They also argue that “mandatory reports can reduce the supply of these schemes by altering the economics of tax evasion of their providers because a) they will be more exposed to claims for promoting aggressive tax schemes, increasing the risk of damaging their reputation, and b) it is Your earnings and rate of return from promoting these schemes are likely to be reduced because they close more quickly.