The draft law on the “principle of tax innocence” includes a Comprehensive reform of the punitive tax systemwhich, in addition to creating significant changes in the amounts above which behavior is considered criminal alternative mechanisms to criminal proceedings to promote confiscation.
The initiative proposes a comprehensive update of monetary thresholds for tax and social crimes, some of them are multiplied by one hundred in relation to current values. A new system for the abolition of criminal acts is also proposed, with the possibility of doing so pay off the debt and another 50%, even after a formal complaint.
Important changes in the penalty tax system
The project proposes significantly increase the minimum amounts which constitute tax crimes, both at a general level and in relation to social security. Below is a detail of the new scales:
Tax crimes
- Easy dodge: increases from $1,500,000 to $100,000,000 per tax year and fiscal year.
- Aggravated evasion: from $15,000,000 to $1,000,000,000.
- Fraudulent use of tax benefits (exemptions, deductions, etc.): from $2,000,000 to $200,000,000.
- Use of invoices or apocryphal documents: from $1,500,000 to $100,000,000.
- Impermissible use of tax advantages: from $1,500,000 to $100,000,000.
Crimes related to social security
- Easy dodge: from $200,000 to $7,000,000.
- Aggravated evasion: from $1,000,000 to $35,000,000.
- Misappropriation of social funds: from $100,000 to $3,500,000.
Other common crimes
This update has one direct impact on criminal tax proceedingsas it significantly reduces the number of cases that could be prosecuted under current law.
New criterion for preventing criminal acts
Currently the regime allows end the crime by paying the debt and interest only once and before reporting. The new project extend this advantagewhich even makes extinction possible after filing the criminal complaintas long as the taxpayer Pay the entire amount due, interest and an additional 50%..
The aim of this change is to prevent the improper use of mechanisms such as comprehensive repair provided for in the Criminal Code, which is usually the case in reality delay the processes without ensuring effective reimbursement to the state. Aside from that, is expressly prohibited the application of this route in the punitive tax system.
Changes to ARCA’s Whistleblowing Policy
They join in two new assumptions in which the tax authority You should not press chargeswithout the need for a legal opinion:
- If the taxpayer has well-founded technical or accounting criteria used to pay the tax.
- When Submit original or corrective affidavits before you are notified of an inspection.
These cases are in addition to the two cases currently envisaged where a prior opinion is required. The idea is that if the taxpayer acted in good faiththe criminal proceedings are unnecessary and collecting the money owed takes priority.
Reformulation of fines and formal violations
The project also suggests a strong update of the sanctions for formal violations. Some examples of the new scale:
- From $200-400 to $220,000-440,000
- From $5,000-$10,000 to $5,000,000-$10,000,000
- From $80,000-$200,000 to $6,000,000-$15,000,000
- From $500-$45,000 to $500,000-$35,000,000
- The fixed amount of $10,000,000 becomes $10,000,000,000
It is a Inflation adjustmentbut that also has the purpose Reassess the deterrent effect of fines.
Shortening of prescription times
Two relevant changes are proposed:
- From 5 to 3 years in tax matters for registered and taxable taxpayers.
- From 10 to 5 years in social security for those who submit their returns on time.
This is how you search positively differentiate the compliant taxpayerand shorten the time periods that the Treasury Department can use for retroactive investigations.
New simplified income tax system
One of the project’s most notable innovations is the creation of a Simplified earning system for human persons and resident undivided goods. This regulation is aimed at taxpayers who: They are not considered big taxpayers and that she:
- Income up to 1 billion dollars
- Inheritance of up to 10 billion dollars
ARCA will suggest a pre-filled affidavitbased on the information available. The taxpayer can accept, supplement or correct it. If accepted and paid on time, the tax will be released and the fiscal period may not reopen except in the following cases:
- Use of apocryphal calculations
- Impermissible deductions
- Lost income
Presumption of correctness and “tax cap”
This is what the law provides presuppose truthfulness of affidavits submitted under this regime, thereby limiting the ability of the Treasury to initiate audits for the specified periods unless they are verified significant deviations.
Aside from that, The use of unjustified capital increases as an automatic trigger for the audit will be deactivated. The aim of this measure is to simultaneously protect taxpayers who comply with the regulation Avoid misinterpretation through the debt collection agency.
Protecting the Compliant Taxpayer
In the event that the taxpayer complies with the simplified regime and then switches to another regime, Protection and liberating effects are retained of the statements made. Control may only be extended if relevant discrepancies are identified, without affecting any prescribed timelines or the scope of the money laundering “fiscal cap” or the new regime.
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