Santa Fe firm nailed for under-invoicing to avoid taxes

[Redpossum]

I have mentioned this before. It is an example of a common scam in which export firms under-invoice their sales to avoid taxes.

Triangulación de exportaciones | Denuncian a firma vinculada a Vicentin por subfacturación

Los productos se vendían a Uruguay y Brasil en un valor entre 55 y 70% por encima del que se declaraba en Argentina.

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The usual Google Translate deal, banner is in Castellano and story will initially appear in that tongue, but wait a few seconds and it will change to English.

They were caught by comparing the export declarations in Argentina to the import declarations in Uruguay and Brazil

An analysis by specialized agents of the General Directorate of Customs discovered that, between 2020 and 2022, a company based in the Santa Fe city of Reconquista under-invoiced its exports of products derived from cotton and sunflower by USD 5,392,666. According to market sources, it is a firm closely linked to the Vicentin group.
...

The differences observed amount to 70% in exports to Uruguay and 55% in those destined for Brazil.
...
the Customs complaint falls within articles 863 and 864 of the Customs Code, for which those responsible could be sentenced to up to 8 years in prison. Under the terms of article 876 of the aforementioned regulation, Customs seeks a minimum fine of USD 69,928,714.27.


The objective of the irregular maneuver was to hollow out the tax base of the operations and avoid the due liquidation of foreign currency in our country. Within this framework, Customs filed a criminal complaint against the firm before the Federal Court No. 1 of Santa Fe.


Specifically, exports of cottonseed pellets, sunflower meal pellets and cottonseed oil are under scrutiny, which were made directly to neighboring countries, but re-invoiced through intermediaries based in the US and the Virgin Islands.

But it's not just Vicentin and this relatively small firm in Santa Fe. All the big export companies are doing this, and it's costing Argentina billions of USD per year in lost revenue. The problem is that Menem, damn his eyes, gave these export firms a sweetheart deal in which they are not monitored but simply "self-report".

Anyhow, it's a well-written article. It's short, factual, and to the point, with an absolute minimum of excess verbiage.

 

[antipodean]

Y? Less than $5m lost tax, $20m spent on a new toy paid by taxes?
As a government if you try to put excessive red tape and costs on doing business or paying taxes and are not seen as somehow giving back to those who pay, you’re guaranteed to get the exact opposite of what you set out the get.

If it bothers any member here, first ensure that one self-reports and pays Argentine tax due on one’s social security or offshore income and assets, liquidate it according to BCA limits & rules and keep oneself up to date on all the changes to the rules and taxes before throwing stones at someone else doing what is essentially the same thing.

 

[Ronnie Hotdogs]

If it’s good enough for Macri it’s good enough for Vicentin

 

[Redpossum]

Y? Less than $5m lost tax, $20m spent on a new toy paid by taxes?
As a government if you try to put excessive red tape and costs on doing business or paying taxes and are not seen as somehow giving back to those who pay, you’re guaranteed to get the exact opposite of what you set out the get.

If it bothers any member here, first ensure that one self-reports and pays Argentine tax due on one’s social security or offshore income and assets, liquidate it according to BCA limits & rules and keep oneself up to date on all the changes to the rules and taxes before throwing stones at someone else doing what is essentially the same thing.

Seriously? You're equating the actions of a multi-million dollar international corporation with those of a private individual? And making excuses for the corporation?

Yes, I am aware of the SC decision stateside referred to as "Citizens United", but...

 

[antipodean]

Seriously? You're equating the actions of a multi-million dollar international corporation with those of a private individual? And making excuses for the corporation?

Yes, I am aware of the SC decision stateside referred to as "Citizens United", but...

Corporations are made up of individuals and individuals make up society, so yes. Tax evasion is tax evasion no matter how you spin it or try to justify it and the social harm is the same, whether your cheating the state out of $5.000 or $500.000. The reasons why you do it are probably similar as well.