The Argentine government confirmed that it will begin to automatically exchange fiscal information with the United States as of 2018, something that will allow the AFIP tax collecting agency access to Argentines’ bank accounts in the United States, La Nación reports. The IRS, its US counterpart, will have the same access to US citizens’ account in Argentina.
This agreement played a key role in getting many Argentines to declare previously undeclared assets under the tax amnesty law. Why? Many knew the Government would get access to their financial information and consequently sanction them for not paying the corresponding taxes on the assets they tried to hide.
A similar situation happened with assets Argentines had in Uruguay, but the agreement with the IRS becomes all the more relevant when you consider that 46 percent of the money declared under the tax amnesty law until December 31 came from the United States.
As for the specifics, AFIP intends to obtain information about Argentines’ potential rent revenue, professional fees and bank accounts that have been declared to the IRS but not the AFIP. “Those contributors who were speculating about what would happen if [Donald] Trump won the US elections now don’t have any more doubts,” tax expert Cesar Litvin told La Nación.
Looks like the time may have come for tax evaders to pay up.