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Argentina: Whether the Argentine government takes any action against business owners who are several months behind in paying their business taxes and, if so, what actions are taken (2000-2002)

In its first quarterly report of 2001, the Fiscal Research and Analysis Directorate (Dirección Nacional de Investigación y Análisis Fiscal, DNIAF) of the federal tax authority of Argentina (Adiminstración Federal de Ingresos Públicos, AFIP) indicated that tax revenues had fallen since the first trimester of 2000, both in total amounts collected and number of persons and businesses contributing taxes due to the economic contraction of the country (DNIAF Apr. 2001). In its yearly report for 2001, the tax authority reports that the described trend of the past year accelerated towards the end of 2001 (ibid. Feb. 2002). The report refers to a complicated tax situation, which included modifications to tax laws and implementation of mechanisms to facilitate tax payments throughout the year; some of the changes to tax legislation affected payments for capital goods, interests, cigarette sale surtax (impuesto adicional sobre los cigarrillos) and insurance, among others (ibid.). A new tax was created, the tax on credits and debits (impuesto sobre los créditos y débitos), which was used largely as a credit for payment of other taxes, such as oil taxes (ibid.).

Legislation on tax issues in Argentina is complex and extensive: AFIP provides listings of rulings (dictámenes), laws, decrees, complementary norms (normas complementarias), general resolutions (resoluciones generales), notices (circulares), joint resolutions (resoluciones conjuntas) and "external news" (notas externas, which refer to norms not issued by AFIP) (AFIP 16 May 2002).

References to penalties and exemption from penalties for overdue taxes were found in items spanning from January 2000 to April 2002. For example, a 25 January 2000 Decree by the President of Argentina refers to tax debt consolidation measures and exemption or postponement of penalties; however, the Decree refers throughout its 24 articles to numerous cases in which exemptions and postponements may not apply (AFIP Jan. 2000).

In its first quarterly report for 2002 on tax law changes, DNIAF describes in summary form at least six pieces of legislation passed from January through March 2002 referring to tax debt pardon (condonación) and payment facilitation (facilidades de pago) measures; all these norm summaries mention specific cases, items, conditions and exemptions that may apply or be excluded from benefits they allude to (DNIAF Apr. 2002).

The Research Directorate cannot provide a legal analysis of the contents and applicability of this body of legislation. However, in a general overview of the tax administration system of Argentina, AFIP refers to a variety of administrative and penal measures that can be applied to what it describes as tax evasion, indicating that these are first of a preventive nature and only later of a repressive nature (AFIP n.d.). Among the most important measures undertaken to fight tax evasion, AFIP lists "mandatory deposits of up to 100 percent of the value added tax" (retención de hasta el 100% del impuesto al valor agregado) for those who repeatedly fail to pay that tax, multidisciplinary adjudication (fiscalización) teams for complex cases, and in-depth adjudication for the persons or businesses with greatest economic significance (ibid.).

Research was limited to reports on federal tax law and practice of Argentina, and does not cover possible provincial and municipal tax law and practice for the various provinces and municipalities of Argentina.

This Response was prepared after researching publicly accessible information currently available to the Research Directorate within time constraints. This Response is not, and does not purport to be, conclusive as to the merit of any particular claim to refugee status or asylum. Please find below the list of additional sources consulted in researching this Information Request.

References

Administración Federal de Ingresos Públicos (AFIP), Buenos Aires. 16 May 2002. Información Normativa. <http://www.afip.gov.ar/normativa/normativa.asp> [Accessed 16 May 2002]

_____. January 2000. Obligaciones Tributarias y Previsionales: Decreto 93/00 (Bs. As. 25/1/00). <http://www.afip.gov.ar/normativa/decretos/dto93_00.html> [Accessed 16 May 2002]

_____. n.d. Sistema Tributario Argentino.. <http://www.afip.gov.ar/sistema/sistema.asp> [Accessed 17 May 2002]

Dirección Nacional de Investigaciones y Análisis Fiscal (DNIAF), AFIP, Buenos Aires. April 2002. Modificaciones a la legislación tributaria con efecto en la recaudación introducidas en el primer trimestre de 2002. <http://www.mecon.gov.ar/sip/dniaf/legislacion1trim2002.pdf> [Accessed 17 May 2002]

_____. February 2002. Informe sobre la recaudación tributaria en el año 2001. <http://www.mecon.gov.ar/rec_trib/4trim01/Indice.htm> [Accessed 16 May 2002]

_____. April 2001. Informe sobre la recaudación tributaria I Trimestre 2001. <http://www.mecon.gov.ar/rec_trib/1trim01/indice.htm> [Accessed 16 May 2002]

Additional Sources Consulted

Clarín [Buenos Aires]. Searchable archives.

IRB Databases.

La Nación [Buenos Aires]. Searchable archives.

Three sources contacted were unable to provide information on the requests subject.

Internet sites and search engines.