Argentina seals tax info exchange deal with the United States

President Alberto Fernández’s administration has signed a new agreement on Monday with the United States to exchange tax information.

The agreement, covering both individual persons and corporate entities, was signed by Economy Minister Sergio Massa Massa and U.S. Ambassador to Argentina Marc Stanley during a ceremony at the Kirchner Cultural Center in Buenos Aires.

"Access to this information is an act of fiscal justice because by detecting tax evaders we will be able to reduce the tax burden on all those who comply with their obligations every day, while seeing others hiding their money in tax havens," declared Massa.

The U.S. Embassy published a communiqué specifying that "this agreement will permit the reciprocal exchange of certain information regarding financial accounts" between the two countries while "guaranteeing adequate data protection."

The pact, which provides for automatic and periodic exchanges of information, will kick in with the new year. The Internal Revenue Service (IRS) will transmit annual data every September 30.

According to Economy Ministry estimates, undeclared funds held by Argentines in United States accounts stand at around US$100 billion out of a estimated US$400 billion worldwide.

The incoming information could mean an additional $1 billion annually for Argentina - over 1% of the $88 billion in total 2021 federal revenues.

At: https://www.batimes.com.ar/news/economy/massa-seals-tax-info-exchange-deal-with-united-states.phtml

Argentine Economy Minister Sergio Massa shakes hands with U.S. Ambassador Marc Stanley in Buenos Aires on Monday, after signing a historic account information sharing agreement covering Argentine nationals and firms.

Argentine taxpayers are estimated to hold around $100 billion in U.S. accounts - largely opened over the past four decades in order to evade taxes.

The country's influential Clarín Group - among the loudest opponents of the agreement - controls at least two Delaware accounts under Wilmington's The Corporation Trust, a reputed tax shelter whose clients have included vulture fund king Paul Singer.

Clarín was vocally supportive of Singer's claims on defaulted Argentine bonds during his 2012-16 dispute with Argentina - a claim which eventually earned his Caymans vulture fund NML a $2.4 billion payout after Mauricio Macri (whom Clarín backed) narrowly won the 2015 election.