These are accounts that were not declared to the Federal Administration of Public Revenue during the periods 2016 and 2017

The Federal Administration of Public Revenues (AFIP) targeted to about 3000 bank accounts that Argentines have abroad. The investigation is the product of the crossing of information with other tax entities in the world.

AFIP targets 3,000 bank accounts of Argentines abroad

The accounts that are under the AFIP’s magnifying glass correspond to people with “high net worth” that:

  • They did not present their personal property affidavit
  • They omitted to declare financial placements abroad in their Personal Assets benefits
  • Or they declared Personal Assets, but for an amount lower than that which appears in the information received from abroad

They also target taxpayers who have an account outside but they are not even registered in Personal Property.

With the data already on the table, the agency led by Mercedes Marcó del Pont will advance with the investigations and analysis of the data packages corresponding to the periods 2018 and 2019.

New controls

Indeed, in September, the AFIP established new internal control measures for local financial entities in order to strengthen the automatic exchange of information with other tax administrations on the bank accounts of Argentines abroad.

It did so through General Resolution 5065/2021, published in the Official Gazette, which establishes modifications that reach the Information Regime that banks must comply with with respect to accounts and operations whose holders live abroad.

According to Annual Information Regime, financial institutions are forced to report annually the data of those bank accounts of subjects and entities not resident in Argentina, such as the account number and their balance at the end of the year. The aim is to combat fraud, evasion and the practice of tax avoidance.

“Argentina subscribes to the multilateral agreement Organization for Economic Cooperation and Development (OECD), by which it receives automatic information from Argentine accounts abroad. Reciprocally, the AFIP has to collect the information provided by banks, of accounts of non-resident foreigners in Argentina and non-resident Argentines. So, in this cooperation framework, the Treasury has apparently detected situations that warrant changing the regulations to try to better identify these non-residents “, explained Sebastián Domínguez, partner of SDC Asesores Tax.

In this context, federal administration It implemented new guidelines to identify non-residents, and thus provide information on bank accounts to the rest of the countries.

“It is a good practice of the AFIP, in something that perhaps does not generate a collection but to another treasury, but it is a reciprocity. Later, other jurisdictions send him good information about Argentines who have accounts, “he added.

AFIP established new controls on Argentine accounts abroad

The regulation in detail

On the one hand, new guidelines were established to document the procedures for internal control. Among them, the training of bank employees so that they “know their responsibilities and how to report suspicious activities”, and the procedure to update internal controls based on changes in their activity or local laws.

They also joined the list of guidelines control of “due diligence” and the presentation of reports that meet the requirements of “anti-money laundering measures” and “know your customer”, among other things.

The above procedure can be replaced by the compliance certifications, in the event that the financial entity has reported less than 100 accounts in the last four previous fiscal periods.

In the event that the financial institution has doubts about the tax residence of the bank account holder or the controlling person, the AFIP also established a series of guidelines to determine whether the self-certification or the documentary evidence that was provided is incorrect or unreliable. .

In this case, the characteristics to take into account are: if the person obtained residence rights under a residency or citizenship scheme by investment; if you have residence rights in another country; if you spent more than 90 days in any jurisdiction during the previous year or if you filed personal income tax returns during the previous year in other states.

“The modifications introduced, together with the list of jurisdictions that grant residence or citizenship by investment, as well as a guide to facilitate compliance by financial institutions, may be consulted in the microsite ‘Financial information of non-resident subjects'”, reported revenue management.

According to the body that heads Mercedes Marcó del Pont, the implementation of these measures is in line with international practices regarding the automatic exchange of financial information.

The changes are introduced within the framework of the experience gathered by the organization and of recommendations made by the Global Forum of the Organization for Economic Cooperation and Development (OECD), “said AFIP.

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