Tuesday, February 7, 2023

Accounts abroad: A peculiarity arises from the agreement between Argentina and the United States.

The Automatic Information Exchange Agreement with the United States is already in force. After a long back-and-forth between the two governments, which involved everything from difficult negotiations to approval of the requirements sought by the northern country, On 1 January, IGA 1A became fully operational. ,intergovernmental agreement, in English). Although, AFIP will not be able to “go fishing” for taxpayers.

As LA NACION estimated, the first notification in the country will come at the end of September 2024, the first year of the next president’s term. The agreement signed by the Economy Minister, Sergio Massa, provides for reciprocal and non-retroactive automatic exchange of information. A distinction, which was published yesterday by the United States Treasury Department, Argentina shares only with Vietnam.

“Of the 113 jurisdictions with which the United States has signed agreements, in 111 cases those agreements take effect as of June 30, 2014, or November 30, 2014, regardless of the date of signature. except for Argentina and Vietnam, where retrospective information is not provided”Sebastian Dominguez, partner at SDC Asesoras Tributarios, observed.

For example, the United States reached an agreement with Algeria on January 18, 2017, but considered the IGA’s effective date as June 30, 2014. The same happened with Angola when the papers were signed on 10 February 2017. or with Bahrain, on May 3, 2018. Instead, it was signed with Vietnam and came into force on July 7, 2016. And in Argentina, information gathering began four days in advance.

“There are a lot of these agreements that are in force since 2017, 2018 or 2019, and they go back to 2014. But ours does not go backward, but goes forward, the first information will come in September 2024. Only then will the Treasury find itself with multiple Argentina accounts, and both taxpayers and the IRS may require ,Internal Revenue Service, US Revenue Service) to send you the details of these bank accounts and Some issues are ‘unsolicited'”, Added Mariano Ghirardoti from the studio of the same name.

Information from the United States Treasury Department

As Cesar Litvin, CEO of Lisicki, Litvin & Associados recalled, will be applicable tax information exchange agreement Signed on December 23, 2016. This is an exchange upon request, where the AFIP is in doubt about a specific taxpayer in order to request information from the United States. If the tax administration detects large uninvested accounts, it can use this tool.

“The strategy may be to go backwards, but they will not be able to do so beyond January 2018, when the previous agreement came into force. AFIP can request accurate data from an account it has identified as undeclared, but will not be able to go fishing, This is more laborious than the automatic exchange of information provided by the Organization for Economic Co-operation and Development (OECD), which Argentina and 111 other jurisdictions are part of, such as Switzerland or Uruguay. Using both agreements with the United States, the retrospective can reach as far back as January 2018 and can be done on a case-by-case basis.she insisted.

For the time being, with the agreement already underway, the Argentine government anticipates A new money laundering racket enters Congress during extraordinary sessions. Information on account holders (individuals), financial institutions, gross amounts of interest, dividends, and other US-source income received by residents Before arrival in the country, taxpayers will have the opportunity to declare assets held in the United States. offshore account.

“But if the AFIP is suspicious of certain accounts and uses prior agreement, it may ask the IRS to send the bank statements of these taxpayers. In that case, the information is more accurate, because They may have information about payments in the name of a partnership or company in the United States or maintenance of property in Miami, If it is not declared, a large control threshold opens up, although the AFIP has to go through it on a case-by-case basis. For this reason, some Argentinians have to think seriously about what to do with money laundering”, Ghirardotti closed.

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