The Fiscal Innocence project, which involves the government in extraordinary sessions, aims to change the penalty tax system and income tax reportingto change the paradigm of the relationship between the state and the taxpayer. They remain innocent until ARCA proves otherwise.
The initiative had already been submitted without success and is now returning to the agenda with the inclusion of the decree providing for extraordinary sessions of Congress in December.
The central goal is that the Argentinians who practiced informality Because of the economic context, they can use this money without being prosecuted by the Customs Collection and Control Agency (ARCA).
ARCA: Why you remain innocent until proven guilty
The aim of the project is to establish the principle that the taxpayer is innocent until proven otherwise, thereby reversing the historical logic of the presumption of tax evasion.
In addition, this is intended to create legal certainty Undeclared funds can be deposited and used in business without fear of tax prosecution due to its previous origin.
With regard to criminal tax law, the project makes crucial changes to the criminal tax law thresholds:
- Easy dodge: The penalty threshold is between $1.5 and $100 million.
- Aggravated evasion: increases from $15 million to $1,000 million.
- Use of apocryphal calculations: The minimum target amount increases from $1.5 million to $100 million.
- Avoiding Social Security (Easy): increases from $200,000 to $7 million.
A significant increase in the minimum amounts would render many of the current criminal tax cases ineffective, allowing the Treasury Department to focus on “real and significant” tax evasion.
Likewise, it searches Shorten the statute of limitations for the ARCA tax determination from 5 to 3 years, provided that the taxpayer has submitted his affidavit on time. This limits the time in which the state can review previous fiscal periods.
But, to avoid impunity, the project increases the fines for formal non-compliance (e.g., failure to file the affidavit), ranging from low amounts (e.g., $200) to much higher amounts: $220,00 for individuals and $440,000 for corporations.
What “spent” looks like in Earnings Simplified
The simplified income tax is being created, a mechanism for simplifying and transparency of personal income tax Justification of assets in income taxwith a “liberating effect” compared to possible ARCA inspections.
The core of the project is the abolition of the initial declaration of assets and the justification of consumption when accounting for the newly created simplified income tax.
Currently, income tax requires taxpayers to justify the fluctuations in their assets from year to year. If the declared consumption plus the change in goods exceeds the declared income, ARCA assumes undeclared profits.
He The official project aims to make this requirement more flexible Justification of consumption. If a taxpayer manages to justify the ownership of his assets (investments, real estate, bank deposits) at the beginning of a period, he is subject to the “presumption of innocence” for future income that does not come from an unjustified increase in assets.
The advantage is that the Taxpayers would no longer have to prove how they spent their money. If your assets at the end of the year are compatible with your declared income, the consumption information is no longer a checking factor.
In this way, funds that enter the formal circuit through this regime receive a presumption of legitimacy for the future.
What does the simplified earning system look like?
The simplified earning system is a voluntary option that ARCA created for peoplewith the aim of facilitating tax compliance and simplifying annual tax accounting.
When it was founded, it was intended only for income from Argentine sources, but recently another disbandment has taken place ARCA expanded the scope to include income from foreign sourcessomething that will certainly differ from the original wording in the project
Membership is voluntary and Large taxpayers cannot join. The maximum income is $1,000 million and the maximum equity is $10,000 million.
ARCA uses the information it already has in its databases (salaries, billings, expenses, etc.) to pre-prepare the simplified affidavit.
He The taxpayer must validate the proposed information from ARCA and may only upload data that the Treasury Department cannot obtain from third parties.
The intervention takes place digitally via the “PH Simple Earnings” service from the ARCA website.
Changing the punitive tax system to prosecute only serious tax evasion and introducing a simplified income tax that does not target consumption are aimed at creating a presumption of innocence in favor of the taxpayer.
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