Saturday, December 10, 2022

The exchange of information with the US on Argentina’s bank accounts: reasons that could prevent the agreement

The United States is very jealous of protecting taxpayers’ financial privacy. Filtering and disseminating this type of information is common in Argentina.

The Foreign Account Tax Compliance Act (FATCA) was enacted in 2010 by the United States Congress to address non-compliance by US taxpayers using foreign accounts. The basic concept behind this is Agreements signed between the US and 113 countries, Given the large number of agreements with countries with high, medium and low economic development, Shockingly, Argentina is not on that list.

bugle talked to a lawyer Martin LitvakiSpecialist in tax issues based in the United States.

In his opinion, “it is a simple agreement to implement, there would be in principle no reason for the United States and Argentina not to sign an agreement”.

– What would be the reason why Argentina has not yet joined the long list of countries that have signed the FACTA.

– Places special emphasis on the United States Tax confidentiality is respected And it includes the financial information of all taxpayers. And Argentina doesn’t exactly characterize it.

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– Can it become an insurmountable obstacle?

– We have to see how the Argentine authorities celebrate their American counterparts. But Argentina has a new record to violate In the matter of protecting the information of the taxpayer. List with citizens who followed money laundering implemented during Mauricio Macrique’s government It was spread on a blog a week after the money laundering was stopped. The same happened with the buyers future dollar In the months before Christina Kirchner’s term ended. Also known as “The Case of Falciani”, a former HSBC employee in Geneva, Switzerland, who copied data from 130 thousand secret accounts containing billions of dollars and undeclared euros. Argentine justices initiated legal proceedings based on the said information (eg Gabriel Martino, the former head of HSBC Argentina), in which he was eventually dismissed. In short, Argentina He doesn’t have an impeccable record With regard to maintaining tax secrecy.

– If the agreement is finally signed, what could happen to Argentinian taxpayers who have accounts in the United States, either with banks or financial brokers?

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– The agreement is that once a year, The IRS (AFIP of the United States) passes out a list with the account number and the name and surname of the account holder who, when opening it in his or her name, declared that he does not reside in the United States. If someone opened the account and did not declare the same, then he/she will have to face AFIP claim. In any case, I emphasize, negotiations, as can be seen on the Treasury website, have varying degrees of progress and are classified as: “the farthest from leading to an agreement” negotiations. in”, then “substantially in agreement” follows. , then “Signed” and finally “Running”. As far as I know, Argentina is not in any of these categories today.

– What might interest the United States in signing this agreement?

– I don’t think your interests are directly related to FATCA. Yes, it can be for political reasons, for example, linked to the vote in a multiparty organization.

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