Overview

• ARCA chief Juan Pazo revealed that VAT evasion has climbed to 37%, matching levels not seen since Argentina’s 2001 financial crisis.
• He confirmed that efforts to pass the fiscal innocence law—designed to legalize over $250 billion in undeclared savings—remain blocked in Congress.
• Pazo warned that ARCA has lacked investment in technology for seven years, hampering its ability to track compliance and collect revenues.
• Since December, the agency has slashed 32% of its workforce, eliminated 45% of senior roles and closed 38 reception offices as part of a wider restructuring.
• ARCA has launched an interprovincial data-sharing pact to improve oversight but says congressional approval of its fiscal innocence proposal is essential to draw informal dollars back into the formal economy.