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Argentina's Overhauled Tax Crime Law Sees First Case Dismissed After Thresholds Raised

ARCA ordered retroactive use of the more lenient rule in pending cases.

Overview

  • Law 27.799 took effect on January 2, sharply lifting criminal thresholds, including evasión simple to 100 million pesos per tax and fiscal year and aggravated evasion to 1,000 million.
  • A federal court in Rosario applied the new limits to grant a dismissal and lifted restrictions, including ordering the release of a businessman previously under house arrest.
  • ARCA issued General Instruction IGARCA20261 to ensure uniform application of the ley penal más benigna across tax, customs and social security cases that are not final.
  • The statute adds compliance incentives, including no criminal referral if capital and interest are paid before a complaint, and extinction of actions if capital, interest and an extra 50% are paid within 30 days of notification.
  • The national accounting federation (FACPCE) asked ARCA for clarifications on the simplified regularization regime, citing open questions on valuation, residency, scope, foreign income and prescription that could influence uptake.