- The axis of the conflict: changes to automatic fines
While the Government expects the Senate to give the so-called “green light”. “Principle of fiscal innocence”A new focus of debate has emerged in recent days between legislators and tax specialists.
The bill that aims to encourage Argentinians to do so “Invest mattress dollars” in economics he received half a sanction in the House of Representatives; That means, He was just one step away from his final sanction.
However, a counterpoint to one of the Commission’s proposed changes recently appeared Government of President Javier Milei: Him Tightening of automatic fines due to the failure to submit the affidavits in a timely manner, which will lead to tightening of controls Customs Collection and Inspection Agency (ARCA).
In view of the concerns that have emerged in the last few hours, the Minister of Economic Affairs, Luis Caputonoted that ARCA will work to provide a new alternative and promised a less “inflexible” solution for those who submit their affidavit.
“Instead of reporting and imposing the fine directly, ARCA sends a reminder for 10/15 business days. Once this period has expired, Only then will the fine be announced and imposed.“explained the head of the Ministry of Finance.
And he emphasized: “It is important that ARCA will be worth the number of days delay in presentationDepending on the case, to be able to impose a lower fine distinguish common violationsof this occasionally, and not automatically apply an inflexible measure.”
The senator and former security minister, Patricia Bullrichwho is responsible for conducting negotiations in the upper house, had assured days ago that the executive was ready for this Accept changes to automatic fines, but only once the initiative is approved.
“We are ready to analyze in the regular sessions the proposal of Senators (Maximiliano) Abad and (Eduardo) Vischi to propose what the fines would be for small taxpayers and whether these fines may be appropriate. Absolutely Since we believe that it is important to implement this law, we are committed to analyzing a short law that can address this problem.“, held.
The axis of the conflict: changes to automatic fines
The proposal aims to update the current fines to natural and legal persons. For example, the numbers are increasing from $200 to $220,000 (individuals) and from $400 to $440,000 (Company).
In addition, the text sent to Congress provides: from January 1, 2027the amounts are automatically updated according to the variation Purchase Value Units (UVAs).
Although they do not seem to be exorbitant values in nominal terms, the increase is represents a jump of more than 100,000% regard to the current scheme.
“Many of these fines are based on formal non-compliance and some are based on statements made by third parties: Taxpayers acting as information, withholding or collection agents. This means that they work ad honorem for the state. With overlapping regimes and no segmentation by size, A minimal delay or administrative error can result in a disproportionate penalty“explained the lawyer and partner of Expansion business Argentina, Diego Fraga.
The crucial point is precisely that in the event of an error or omission, the penalty falls on the taxpayer. “If a natural or legal person forgets to pay VAT due to an error or problem, they will of course have to pay interest. But they will also impose fines of up to $440,000 on you.. Sometimes it can even exceed the amount of the payment obligation, regardless of whether a 50% reduction is possible“, explained the auditor and partner of González Fischer and Asociados SA, Sergio Biller.
The proposal that the Government intends to adopt with “yes” or “yes” provides for the replacement in “Title II – Chapter I” (Article 15) of the first paragraph of Article 38 of Law No. 11,683, text enacted in 1998 and its amendments. the expressions “two hundred pesos ($200)” for “two hundred and twenty thousand pesos ($220,000)” and “four hundred pesos ($400)” for “four hundred and forty thousand pesos ($440,000).”.
This update also does not require the approval of the accountant and partner of Lisicki Litvin & Associates, Martin Caranta. “This is a major cause for concern, both among SMEs for covering the costs of late submission -which is very insignificant today and would become quite significant- from a professional point of view (from the accountants),” he emphasized.
The government would consider reviewing the increase in automatic fines for now just at the beginning of the regular sessions of Congress. The outlook appears complex for taxpayers.
“Although it is promised to be corrected later through a ‘short law’, the norm should come into force, ARCA will apply the new system from day oneunless there are transition periods and tier criteria,” said Fraga.
Ultimately, Biller believes that the amounts should be reduced. “These are completely excessive amounts and will cause great harm to SMEs and accountants. that sometimes they submit the tax payment a few days late due to an omission or vacation. It’s not a problem to compare interests, but in the end the penalty is higher than the tax paid“, frame.
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