As we pointed out in our Newsletter from the month of July, by means of law Ley 27.260, a scheme has been sanctioned in Argentina for the laundering of funds and settlement of overdue debts.
In regards to the fiscal moratorium, we now proceed to state the main points to be considered:
1- What does the payment plan consist of and what liabilities may be included?
The matter at hand is a payment plan that allows for the settlement of tax dues, customs payments, and social security resources, overdue as of May 31st 2016, inclusive. Joining is possible as of August 1st 2016 and until March 31st 2017, both inclusive. Besides the other liabilities mentioned, one finds included, among others, the following:
• Debts included in payment facilitation plans whether currently active or expired, with starting dates valid with in relation to the fiscal transparency law (Ley de Sinceramiento Fiscal).
• Deductions and perceptions not practiced or not carried out, or which have been practiced or carried out yet not paid.
• Personal contributions by workers, both sole traders and those in employment agreements.
• The integrated tax and fixed previsional payments corresponding to persons in the Monotax system, Monotributo.
• Taxes due for non-documented expenditure (legislation article Art. 37 de la Ley de Impuesto a las Ganancias)
2- Who and which liabilities may not be included in the payment plan?
The following persons will not be able to join the payment plan:
• Those having declared bankruptcy without continuity of the enterprise.
• Persons definitively convicted of tax offences.
• Those convicted definitively of common crimes related to tax liabilities, that is, by final judgement.
• Legal entities of which the partners/management have been convicted definitively.
• Persons with processing, whether final or not, for asset laundering, financing of terrorism, fraud against public administration, embezzlement, swindling or fraud and other non-fiscal criminal offences.
• For those having penal procedures in progress, for crimes detailed in the previous point, statement and plan will be accepted on a conditional basis.
Furthermore, the following liabilities may not be included in the payment plan (among others):
• Payments and contributions intended for Sistema Nacional de Obras Sociales.
• Debts from fees due to workplace hazard insurance companies.
• The liabilities and breaches relating to promotional schemes providing tax benefits. Nevertheless, the resulting tax debt from its failure, along with its corresponding attachments, may be settled in accordance with the present program.
• Current payment-facilitation plan fees.
• Down payments.
• Fees relating to compulsory life insurance
• The interests, be they compensatory or punitive, fines and other ancillaries relating to the above subjects, except in the case of interests on down payments.
3- Which are the main benefits to be obtained by those taking part in the plan?
• The fines and further penalties corresponding to liabilities due and cancelled on 31st of May 2016 will be deemed written off, as long as they are not in force on the initial effect date of the new legislation and the main liability has been cancelled by that date.
• The sum total of compensatory and punitive interests corresponding to principal owed for sole-trader pension payments.
• Interests both compensatory and punitive in the amount that, due to the total interest, exceeds the percentage stated for each:
– Fiscal year 2015 and liabilities due on 31/05/2016: 10% of the principal owed.
– Fiscal years 2013 and 2014: 25% of principal owed.
– Fiscal year 2011 and 2012: 50% of principal owed.
– Fiscal years 2010 and earlier: 75% del principal owed.
When does the plan’s expiry take effect?
The payment facilitation plan’s expiry will take place in full legal right and without need for involvement of any kind on the part of this Body, on the respective grounds for each case, detailed below:
• Lack of cancellation for 3 fee instalments, consecutive or alternating, precisely 60 days after the due date, for the third of these.
• Lack of payment of one or several un-cancelled fee instalments, 60 days after the due date for the plan’s last fee.
The tax payers and or responsible parties, once expiry of the payment facilitation plan has been declared, must cancel the amount due of the debt by means of a bank deposit or electronic transfer of funds.