Problem is that the consequences are FAR worse if I were to show upon AFIP's radar. If they went after my company for fines/taxes/etc I would lose my job. Whereas if I get kicked out of Argentina...well there is always Uruguay!
I don't understand how I won't show up on their radar as a result of getting a DNI. Aren't they going to wonder why this permanent resident has not paid a dime in taxes for the privilege of residing in Argentina?
You are assuming that Argentina is very organized and structured. You have to understand how chaotic it is there. The right hand typically doesn't know what the left hand is doing there. I have many, many, many wealthy friends there and they have limited activity in Argentina banking. (i.e. they don't have big amounts in their bank accounts there. Just enough to pay bills, they don't use their Argentine credit cards much, they declare limited/low income on paper, etc). They own multiple properties yet they stay under the radar with AFIP.
It's funny because some of my best friends there asked me if I could get an additional credit card in the USA. In the USA you can easily get an authorized card and you don't have to supply any Social Security #. So they just use that to buy anything/everything and they just pay me cash. I think many locals must employ similar type options. In this way, they stay under the radar with AFIP because they can't see ANY of their purchases. Your situation really isn't any different.
I think you're mistakenly comparing it to the USA or first world countries where everything is structured and the IRS easily can see if you aren't reporting income, etc. It's NOT like that at all in Argentina. It's a chaotic mess so that's the last thing I'd worry about if you're worried about that.
Just do what you're doing and don't open up bank accounts locally, don't show any financial activity. I have lots of American friends that got DNI's there with NO local financial activity and successfully stayed under AFIP's radar and they own multiple properties. No problem at all.
In the USA, even if one client pays me and issues a 1099 and I forget to declare it. Or I have interest income from a bank and I forget to declare it, I automatically get a letter from the IRS. In the past 20 years I've gotten audited from the IRS 5 times. (Granted I own multiple companies and have multiple sources of income). But in Argentina there is systemic black market activity where everyone pays under the table, a large % of employees are in the black, etc. The last thing AFIP is going to worry about is one gringo that has a DNI that doesn't have ANY financial activity in Argentina. That shouldn't be a concern whatsoever for you.
Out of all my friends/clients that have DNI's, NONE of them have any local banking activity and they have NEVER had any problems with AFIP. And this dates back to 2002 when I started buying real estate there.
I'm not saying you should get a DNI but really if you are spending THAT much time there I really can't see a big downside to getting a DNI there. People always throw out the "but Argentina taxes you on worldwide assets". I always respond, but they don't even know what's going on in THEIR country. Fat chance they will know what's going on outside Argentina. And especially now that CFK will come back in power, countries like the USA will NOT be close to Argentina.
CFK will also probably go back to applying to visas for Americans, restricting banking activities, and other anti-American schemes so I think more than ever it would be good to get a DNI while it's relatively easy. JMHO.
