Félix Rolando analyzes the scope of the Tax Innocence Law and the Simplified Income Tax Regime, in the context of the debate on the formalization of undeclared assets and the eventual banking of the so-called “mattress dollars”.
We reproduce below the complete article published by iProfesional:
The Tax Innocence Law seeks to formalize undeclared dollars but taxpayers’ advisors do not always agree.
The Minister of Economy, Luis Caputo, said “now yes, let’s take the dollars from the mattress to the bank”. For some tax advisors, this laundering promoted by the law will be massive, but other experts are cautious and point out difficulties and risks for financial entities.
What those in favor say
“Now, with the regulation, the whole regulatory circle that gives the Simplified Income Tax Regime has been closed, and there are many benefits for those who adhere: in addition to having a simple sworn statement with very little data to provide to ARCA, this system grants a tax block that operates in a forceful way”, indicates César Livtin, from Lisicki, Litvin & Abelovich law firm.
“If the taxpayer pays his taxes well from now on and does not incorporate any apocryphal invoices, the benefit is very good because it has the effects of a whitewash with the “tax cap” operating backwards,” he explains.
“If a friend asks me, I would tell him: if you are already registered in Income Tax and meet the requirements, quickly join the Simplified Regime, and if you have undeclared dollars coming from legal activities, use them with all tranquility to obtain an income or have the dream of taking a trip, since it does not pay to have them in a safe deposit box or in the mattress”, he says.
In turn, Félix Rolando, from Andersen Argentina, considers that “there would not be any inconvenience, as long as the taxpayer adheres to this new regime and submits the tax return in accordance with the same and no significant discrepancy is detected with respect to the base period presented”.
What are the concerns of the cautious?
“I see a massive passage of taxpayers who are able to adhere to Simplified Income Tax. Everyone is going to pass, because it gives many benefits, with the liberating effect and the presumption of accuracy backwards”, says Marcelo Rodriguez, from MR Consultores.
“From there to the fact that it is massive that the subjects who have hoarded money incorporate it to the productive process or buy goods, there is a lack of regulatory norms from BCRA or UIF; there is no norm that tells banks not to ask for an accountant’s certification on the origin of the goods. This happened to me yesterday,” he warns.
“Some people who want to buy a house, a car or fund a company will take the risk, but the conditions are not right for this to be massive; it will take some time for this to happen,” he says.
“Is it already possible to operate, is there anything missing? Normatively, Simplified Income Tax is already regulated. In practice, the operation of this regime is enabled as from 11/2/2026 (service “Simplified PH Profits”)”, says Diego Fraga, partner of Expansion Business Argentina.
“What can vary is the internal criteria of each bank (what they ask for, how long they take, what documentation they require),” he warns.
“The maximum figure of u$s 700,000 that banks would accept to launder was circulated”. This number, which came to light from banking associations, is not a “legal cap” of the regime in the law or the regulations. It seems to be more an operational reference of the sector (risk appetite, internal thresholds, etc.), not a regulatory franchise”, he clarifies.
“In practical terms, the regime can be very useful for certain “sloppy” self-employed. On the other hand, for taxpayers who are already very tidy and see it mainly as an opportunity to launder/bank assets, I would be more cautious,” he comments.
“It is worth weighing risks and grounds for decay (especially criteria such as “apocryphal” and other typical discussions with ARCA), and looking at how it is applied in practice before using it aggressively,” he says.
Are banks going to make Suspicious Transaction Reports?
“With the regulation of ARCA, from the fiscal point of view, there is a legal lock that complies with the objective of this law, which is a permanent laundering, but it must comply with the rules on the origin of the funds and the destination”, remarks Humberto Bertazza, of Bertazza, Nicolini & Corti law firm.
“If the taxpayer has funds deposited in a bank account, withdraws them and buys a car, it is legitimized; if this is not the case and buys the car with dollars that were not formed before, it has to be done via destination, that is to say, it is formalized by depositing the dollars in the dealer’s account and the fiscal lock is produced”, he exemplified.
“But it is different from the point of view of money laundering prevention. Although the regulation establishes that banks will have to see the digital proof of compliance with Simplified Income Tax and this proof will, in principle, favor the formalization of operations, it is not the definitive proof,” he stresses.
“On the contrary, the financial entity will have to use all the provisions established by the FIU for the prevention of money laundering and if an inconsistency arises, it will have to file a Suspicious Transaction Report (STR),” he emphasizes.
“It is an opportunity for dollars to be transferred to the real economy, but I do not see that the FIU issue is 100% solved. Banks have the same obligation to identify which assets have a legal origin and which come from terrorism or drug trafficking,” he says.
“Banks that know the client or see that the amounts are not disproportionate, accept them, but otherwise they will file a STR with the FIU,” he adds.
“If dollar laundering will be massive with this regime is difficult to foresee; specialists do not know if this will be an opportunity or a risk”, assures Guillermo Perez, from GNP Group.
“It all boils down to an issue of trust, if people believe that this Government wins the election in 2027, they can believe that the burden of proof will actually be reversed as indicated by the Tax Innocence Act, and not that in 2027 all this legislation is repealed,” concludes the tax advisor.
Source: Iprofesional.com
If you have any questions about this topic, please do not hesitate to contact us:
Félix Rolando
Tax Partner
felix.rolando@ar.Andersen.com