Anyone concerned about this new proposal by FdT?

[007gaucho]

Hello everyone, just curious to hear your thoughts on this new proposal by FdT to tax foreign assets which haven't been declared to AFIP. I know a lot has been discussed on the personal assets tax in this forum, and that the "general consensus" is that foreigners are not the target here. However, it seems to me like the stakes are now too high, if the law is passed, as the risks involved of having to pay up to 50% of the value of undeclared foreign assets and possible prision time (if you do nothing and are discovered) outweigh the prospect of living in this wonderful country for the long term.

Here are the details in case you haven't read the news:

Un "impuesto a la fuga": de qué se trata el polémico proyecto de los senadores del Frente de Todos para pagarle al FMI

La iniciativa apunta a bienes no declarados en el exterior y hace hincapié en la "fuga de capitales". El Gobierno lo respaldó. Los detalles.

www.iprofesional.com

Polémica: el nuevo proyecto K habilita al jefe de Gabinete y a una comisión del Congreso a acceder a información fiscal secreta

La senadora Juliana Di Tullio informó que buscan recaudar USD 70 mil millones para saldar la deuda con el FMI. “Vamos por los grandes, por los peces gordos”, declaró

www.infobae.com

 

[Millie]

Christina has been in touch with Mark Stanley … Not sure if he is going to ensure facilitation with banking records between the countries or how that will go….. A bit worrisome for sure …( in my opinion )

 

[Alfred_Arnold]

This is an example of looking on the bright side. Legislators of FdT voted against the agreement unanimously, but since it passed, it's a great excuse to come up with new taxes to pay for it!

No, I don't think it's something to worry about. Sounds theatrical for the headlines but not possible to enforce.

 

[Bajo_cero2]

This is about money flight not money generated abroad that paid taxes abroad.

 

[antipodean]

I would not be concerned about this law being passed or changing anything for most people - just another populist attempt at taxation that would be as doomed to fail as with the wealth tax and great fortunes tax that ends ups pushing more people OUT of the tax net than bringing them into it.
Also too many unprecedented issues contained within the proposal, including paying taxes in USD.

What I would be more concerned about is the government stepping up cooperation with a major jurisdiction like the US where many Argentines and Argentine residents have assets or economic activities (e.g. bank/ virtual accounts, investment funds, companies etc.) as all of these things require disclosing the the US Government where you are a resident for tax purposes and what nationalities you hold when setting up or maintaining them or declaring taxes or statutory information disclosures. Since there is already an exchange of information agreement in effect with the US, and the US is sitting on a wealth of information about such Argentines/ residents/ citizens, it looks like it is more an issue of fine tuning it so that AFIP can benefit from it just as much as the IRS does today. For an Argentine tax resident having things in the US and not declaring them is just as much of a crime and tax liability today as it would be if this law was passed, the issue is detection.

My fear deep down is that ultimately this or future populist governments get so desperate with all these failed attempts to tax what Argentines have abroad and Argentines with means moving abroad to avoid tax residency here, that they adopt that highly unusual and unfair US tax approach where it applies taxes on all citizens and permanent resident card holders regardless of where they actually live. After all this country is just as bizarre as the US or Eritrea so I wouldn't think it is beyond it and the idea of doing the opposite and actually making Argentina an attractive tax destination for the wealthy or businesses like Uruguay or Costa Rica just won't sell here, despite the obvious benefits this would bring.

 

[Alby]

I would not be concerned about this law being passed or changing anything for most people - just another populist attempt at taxation that would be as doomed to fail as with the wealth tax and great fortunes tax that ends ups pushing more people OUT of the tax net than bringing them into it.
Also too many unprecedented issues contained within the proposal, including paying taxes in USD.

What I would be more concerned about is the government stepping up cooperation with a major jurisdiction like the US where many Argentines and Argentine residents have assets or economic activities (e.g. bank/ virtual accounts, investment funds, companies etc.) as all of these things require disclosing the the US Government where you are a resident for tax purposes and what nationalities you hold when setting up or maintaining them or declaring taxes or statutory information disclosures. Since there is already an exchange of information agreement in effect with the US, and the US is sitting on a wealth of information about such Argentines/ residents/ citizens, it looks like it is more an issue of fine tuning it so that AFIP can benefit from it just as much as the IRS does today. For an Argentine tax resident having things in the US and not declaring them is just as much of a crime and tax liability today as it would be if this law was passed, the issue is detection.

My fear deep down is that ultimately this or future populist governments get so desperate with all these failed attempts to tax what Argentines have abroad and Argentines with means moving abroad to avoid tax residency here, that they adopt that highly unusual and unfair US tax approach where it applies taxes on all citizens and permanent resident card holders regardless of where they actually live. After all this country is just as bizarre as the US or Eritrea so I wouldn't think it is beyond it and the idea of doing the opposite and actually making Argentina an attractive tax destination for the wealthy or businesses like Uruguay or Costa Rica just won't sell here, despite the obvious benefits this would bring.

Careful, you will upset a number of people on this website who have convinced themselves that there is nothing to worry about now (and will never be anything to worry about in the future) and who claim to know exactly what the government and AFIP are interested in without ever providing a shred of hard evidence, for example about the behaviour of the actual entity charged with tax collection and the resources available to it.

 

[Millie]

This was in the article that 007 posted earlier today…
I am not trying to be negative… simply realistic
This is potentially terrifying….
Of course in the US ,banks there have an obligation to divulge info to the IRS , if something seems askew ,but somehow here it seems all the sudden much more stringent and potentially perilous if you don’t comply …
Just my two cents.

 

[Millie]

Terrifying because it’s like a bounty if you will..

 

[Alby]

Terrifying because it’s like a bounty if you will..

Don't be terrified. The drumbeat keeps getting louder, but this particular measure won't get up. There is a balance that each individual has to strike for themselves between terror and complacency.

 

[Quilombo]

I wish I was rich enough to have to worry about these things lol