The Province of Buenos Aires ordered the temporary suspension of those companies and persons who, acting as collection agents, withheld or received taxes exceeding P100 million and did not pay them within the specified deadlines.
The measure ordered by ARBA has been formalized by a decision published today in the Official Gazette, which sets out the terms and scope of suspension for those who do not comply with the legal obligation to collect and deposit regional taxes.
According to the tax law, keeping declared funds without depositing them constitutes fraud and enables fines and penalties to be applied. In this context, the decision states that the suspended agent will not be able to make collections related to the periods and systems reached, since the ARBA operating systems will prevent any attempt at advertising or payment associated with it.
The measure also considers aggravating factors: if violations persist over time or debts are not settled, ARBA could deepen planned penalties.
According to the resolution, taxpayers acting as collection agents may be suspended when they owe debts for three or more monthly periods, or six or more biweekly periods (continuous or alternating) whose declared amounts collectively exceed P100 million. It also stipulates the suspension of anyone who does not pay the announced amounts, even for one period, if more than 60 days have passed since the expiry of the period.
“Collection agents are exposed to tax fraud when they keep taxes received or withheld in their possession beyond the permitted time. In the face of these behaviours, we will move forward with temporary suspensions to ensure the correct collection of payments on account and protect public resources,” ARBA Executive Director Christian Girard explained.
Girard also indicated, “The suspension will be lifted as soon as the taxpayer settles his situation and pays the amounts declared and not paid in a timely manner. From that moment on, he will be able to work normally again and carry out the role assigned to him by the regulations.”
The suspension will be implemented through an administrative action that will be notified at the collection agent’s financial electronic (DFE) address and will be recorded in the agency’s databases. The penalty will be applied to all gross income collection systems in which the subject is registered and will apply from the date specified in the notification.
During the suspension period, taxpayers may not count agent collections as payments on their tax liability. Likewise, while the procedure is ongoing, the arrested person or company will not be able to register as a collection agent in systems other than the one in which it was investigated.