The Argentine government has announced the signing of an automatic tax information exchange agreement with the United States, known as FATCA, which will come into effect in January 2023. The agreement will allow the Federal Administration of Public Revenues (AFIP) to automatically access data on bank accounts held by Argentine citizens in the U.S., rather than relying solely on specific requests as was previously the case.
Economy Minister Sergio Massa confirmed that the agreement was scheduled to be signed in late November or early December 2022. The main objective is to identify Argentine citizens who are evading taxes through undeclared foreign accounts.
The agreement will also provide access to information on shareholders of corporations and trustees of entities potentially linked to U.S. bank accounts. This will expand AFIP’s ability to trace potential tax evasion schemes involving offshore companies created in jurisdictions such as Florida or Delaware.
It is estimated that there are approximately $100 billion held in U.S. bank accounts owned by Argentines. These funds could generate significant additional revenue for the Argentine tax authority.
The agreement is part of a broader effort to prevent the U.S. from serving as a tax haven for individuals attempting to evade their fiscal responsibilities. It builds on a series of initiatives launched in 2014, including agreements signed with the OECD (Organisation for Economic Co-operation and Development). The exchange of information with the U.S. is seen as a key measure in the fight against tax evasion and is expected to generate around $5 billion annually in additional revenue for the Argentine Treasury.
AFIP head Carlos Castagneto emphasized the importance of the agreement and acknowledged the collaboration with Minister Massa in advancing efforts to combat tax evasion. This initiative is expected to significantly impact those who avoid taxes by engaging in capital flight and fiscal fraud to escape their obligations in Argentina.
