Argentina Signs Automatic Tax Data Sharing Agreement With the United States – The Argentine government has signed an automatic tax data sharing agreement with the United States that would allow the national tax authority to get information from accounts and organizations maintained by Argentine nationals offshore. The agreement, signed on December 5 by the Argentine minister of economy, Sergio Massa, and the U.S. ambassador to Argentina, Marc Stanley, signifies a significant increase in the volume of data to be shared between the Argentine tax authority (AFIP) and the Internal Revenue Service (IRS).
While the two countries had signed a similar agreement in 2017 as part of the Foreign Account Tax Compliance Act (FATCA), its operational approach was different, and information exchange was handled on a case-by-case basis. Massa added that due to these restrictions, just 68 citizens provided information this year. As part of the protocol, tax authorities from both countries will be required to establish methods for sharing this information, which will entail the creation of shared databases.
People Also Read: Russia’s Largest Digital Asset Deal Denominated in Chinese Yuan
About the new system, Massa stated: “It’s a massive deal. It will include information on Argentine citizens who have signed their declaration of foreigners at the time of depositing their money in an account in the US and who have done so per se as individuals, and as part of companies or trusts.”
In addition, Massa stated that the earning products of trusts and organizations will also be declared under this agreement. Massa intends to supplement the agreement, which goes into effect on January 1st, with new legislation that will permit citizens to legitimately transfer their assets and funds to other countries, but will also punish money laundering and capital flight. On the objective of this new law, Massa explained: “We want to break the idea of this being seen as a witch hunt. The AFIP is going to look for those who did not pay, to reduce the burden on those who pay taxes every day.”
A bill proposed in April by the Argentine senate called for the taxation of undeclared items held abroad by Argentine nationals in order to pay a portion of the country’s IMF debt. In the same month, Mercedes Marco del Pont, the head of the AFIP, urged for the establishment of a global system to register the ownership of electronic money and cryptocurrency. The stated purpose is to prevent tax evasion.
READ MORE
Elon Musk Warns of Severe Recession — Urges the Fed to Cut Interest Rates Immediately
Argentina to Revamp Anti Money Laundering Law
Putin Calls for International Settlements Based on Blockchain and Digital Currencies
