Tax planning: Buenos Aires judiciary rejects a lawsuit against AFIP

The judge of Buenos Aires considered that the offer by the Council of Economic Sciences of Buenos Aires vs. General Decision No. 4838 regarding Tax planning, So instructions are received “They are in full force.” This is clear from the ruling on requesting the precautionary measure Failure to implement the system that describes the tax reduction strategy.

Information systems are like that implemented by AFIP A widespread practice among tax administrations around the world Because it allows verification that taxes have been entered into in jurisdictions where taxable events are actually completed, indicated by the Federal Public Revenue Administration.

A mechanism similar to that created by the body headed by Mercedes Marco Del Ponte They indicated that it is in effect in European Union countries as well as in the United States, the United Kingdom, South Africa, Canada and Mexico.

Faculties of Economic Sciences started in various jurisdictions Take action before the end of the year against the system by saying that it may violate professional secrecy between accountants and their clients. The aforementioned decision stipulates that tax representatives inform their planning of the scheme they have planned to estimate the tax burden and reduce tax.

caution

Professional Council of Economic Sciences of Buenos Aires You have requested a precaution So that the tax planning scheme is not applied until the AFIP is issued based on an administrative claim. As the administration has already responded, Federal judge Alberto Recondo considered the point “abstract”.

In the background, there is a debate of colleges and accountants studies against the decision. One of the foundations RG 4838 Is that “Utilization Some tax planning strategies It allows the companies that implement it to take advantage of the complexity of the tax system as well as the variations in it, in order to Reducing the tax burden for each subject“.

“from According to the OECD, tax planning by multinational corporations generates an estimated reduction of between 4% and 10% in corporate income tax collection at the global level. ”

International organizations have highlighted the progress the Argentine government has made in transparency Such as the prestigious UK’s TJN Tax Justice Network. “Argentina continues to move forward to be at the forefront of transparency,” say experts from TJN.