Monday, March 25, 2013
Ricardo Echegaray, head of Argentina's Federal Administration of Public Revenue has reported that the tax agency has identified inconsistencies in the tax returns of 285,000 companies and individuals through the use of its electronic audit system, which aims to detect when taxpayers have failed to declare assets, expenses or income.
Echegaray explained that the system uses information on credit cards, vehicle purchases, expense payments, foreign travel, trusts, bank accounts and securities, among others, to identify possible cases where a taxpayer may have evaded tax.
The affairs of 9,375 taxpayers were flagged following the purchase of luxury cars, which in some cases cost double or triple the taxpayer's declared annual income. Another 15,972 taxpayers are to be investigated for obtaining permits to purchase foreign currency for emigration purposes but who never left Argentina. Faced with double-digit inflation, Argentina has imposed stringent exchange controls to prevent affluent taxpayers from storing their wealth in other currencies, such as the US dollar - which now has a disproportionately high value on the Argentinian black market.
11,912 cases involved the under-declaration of sales by VAT-registered traders; 21,130 taxpayers failed to inform the tax man of bank assets; 13,166 failed to declare securities in Argentina, and 1,675 portfolios held abroad. Undeclared trusts accounted for 14,230 reports.