Argentina’s Federal Administration of Public Revenues (Administración Federal de Ingresos Públicos, AFIP) has announced that is it launching the tax planning information regime (régimen de información de planificaciones fiscales tributaries, IPF regime) to crack down on tax evasion by companies and individuals.
On Monday (October 19, 2020), AFIP published General Resolution 4838/2020 (Resolución General 4838/2020), implementing the IPF regime by monitoring tax-planning strategies that may lead to tax evasion, as well as encouraging voluntary compliance.
Taxpayers and advisors will be required to report international tax planning that involves the use of companies to take advantage of double taxation agreements, strategies to avoid permanent establishment status, and location of taxable bases in foreign tax authorities. Other instances of planning that should be reported include the involvement of low- or no-tax or non-cooperative jurisdictions and any case in which the “human person, undivided succession, partnership, trust, foundation or any other foreign entity or legal instrument has dual tax residence.”
Information and documentation around the implementation of any such planning must be submitted to the IPF regime, providing “clear, precise and sufficient information” on the nature of the planning and any tax advantage or benefit that can be expected to arise from it.
Failure to comply could lead to penalties and sanctions as set out in Argentina’s tax procedure law, Law No. 11,683.
As well has aiding in the prevention of tax evasion, AFIP has stated that it hopes the IPF regime will allow them to flag any potentially high-risk fiscal planning with taxpayers in good time, encouraging future compliance.
Published on October 23, 2020