After I got half approval for the project Tax innocenceThe government is ready to allow changes to fines for small and medium-sized enterprises (SMEs), but will only do so after the project is approved at regular meetings.
Meanwhile, if the project is approved in its current form, the automatically imposed fines will increase by more than 110,000%.
“The amounts of increase that the project has are very important. For example, the Article 38 penalty, which today is $200 – totally outdated – increases to $220,000 for human persons and from $400 to $440,000 for legal entities,” commented the CEO of SDC tax advisorSebastián Domínguez, before treatment in the House of Representatives.
These are fines that are imposed if affidavits are not submitted on time. “It may be that a small and medium-sized enterprise (SME) is a day late due to administrative problems, a lack of employees or a human-sized person. And a fine is quite burdensome for this type of small business.”commented Dominguez. Already during the treatment Chamber of DeputiesPeronism urged to change the project and make the amount of the fine dependent on the type of taxpayer.
He held the same Noelia Girardi the tax manager Lisicki, Litvin & Abelovichfor which the government’s proposal to increase fines by a fixed and high amount is controversial. This would apply equally to all taxpayers, without distinction based on size, economic capacity or severity of non-compliance.
“The grading proposal aims to ensure that private individuals and SMEs do not receive the same sanctions as a large company for a purely formal non-compliance. The underlying debate is not whether the fines should be updated, but rather whether the sanction system should be proportionate, appropriate and respect the ability to participate. The risk highlighted is that with non-graded fines, the system ends up becoming regressive and punishing formal errors with the same severity as relevant ones Circumvention behavior,” he emphasized.
It is paradoxical that the same project with which the economic team wants to take dollars out of the Argentines’ mattress is introducing a 110,000% increase in automatic penalties, which is a hard blow for all taxpayers, but especially for SMEs, which were already affected by the “cash shortage” in the run-up to the general elections.
Although it is part of the economics minister’s covert policy, Luis Caputo: While the labor reform proposes to reduce corporate income tax (which will cost 0.22% of GDP and benefit only 144 companies), it intends to compensate for petty cash by attacking the smallest link in the production network.
And it is an issue that Caputo is fixated on, because already during the treatment of the project by MPs Ricardo López Murphy and Óscar Agost Carreño, in the middle of the year they sent the then president of the Budget and Finance Commission, José Luis Espert, to negotiate the inclusion of the entire Tax Innocence project, with a particular focus on updating the fines.
She was a senator and responsible for the negotiations in House of Lords, Patricia Bullrichwho confirmed last Friday that they are ready to make changes to the project that is intended to give taxpayers legal certainty so that they can receive the dollars they bought in the parallel market during the years of foreign exchange restrictions. But once this was already approved by a short law.
“We are ready to analyze in the regular sessions the proposal of Senators Abad and Vischi to propose what the fines would be for small taxpayers and the possibility that these fines would be appropriate. Since we believe that it is important to implement this law, we are definitely determined to analyze a short law that can resolve this problem,” he explained. Bullrich.
That’s it, though Bullrich had the support of senators Freedom Advances (LLA)The Radical Civic Union (UCR), Republican Proposal (PRO) and provincial parties, there were questions from Maximiliano Abad and Eduardo “Peteco” Vischi.
“I welcome the paradigm shift around the tax innocence law. The concept that all taxpayers are tax evaders is being abandoned. This change makes them innocent until the Ministry of Finance proves otherwise with evidence,” radical Senator Abad began by saying. “As for the update of the fines, the affidavits go from $200 to $200,000 and it is not clear which system is used. Furthermore, there is no discrimination between small, medium and large taxpayers. I believe that the regulations should discriminate.”he added.
The equation is clear, Bullrich has to prove it Pink house which emerged victorious in its first round in the Senate. For this to happen, half of the labor reform must be approved; and enact the 2026 budget and bill into law Tax innocence before the end of the year. “It will all depend on how much lawmakers believe in the new senator, who is burdened by the administration’s reputation as a ‘bad payer.’
The paradox is that the calls for the introduction of an update mechanism and the gradation of automatic fines by type of taxpayer were made before the project was considered in 2011 Chamber of Deputies both from dialogue-oriented opposition lawmakers and from specialists whom the government did not want to hear.
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