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Argentina Signs Deal With Andorra To Track Down Hidden Funds

BUENOS AIRES -(Dow Jones)- Argentina has signed an agreement with Andorra to exchange banking information in a push to track down Argentines with cash hidden in overseas tax havens.

The agreement follows a similar deal signed with Monaco earlier this month and is part of a drive to catch tax cheats after the Aug. 31 end of an amnesty program for Argentine companies and individuals with hidden funds and unpaid taxes.

Argentina expects to sign similar agreements with Costa Rica, Cayman Islands, Bahamas, Dutch Antilles, Aruba, Barbados and Jersey, the national tax agency AFIP said in a press release Monday.

According to various estimates, Argentines have well over $100 billion in funds invested overseas.

The amnesty plan hauled in 32.8 billion pesos ($8.5 billion), surpassing expectations, but still leaves a large amount of funds held by Argentines overseas or suspected to be hidden from authorities.

Just under 170,000 companies and individuals took advantage of the amnesty plan, paying ARS14.7 billion in debt owed to AFIP.

Almost 36,000 individuals legalized undeclared funds under the amnesty, bringing in ARS18.1 billion hidden by individuals overseas.

Individuals were allowed to declare their hidden stashes and wipe the slate clean by paying an 8% tax, or just 1% if the funds are invested in real estate or capital goods. That compares with an income tax as high as 35% that would have been paid on most of the funds.

-By Shane Romig, Dow Jones Newswires; 54-11-4103-6738; shane.romig@ dowjones.com

  (END) Dow Jones Newswires
  10-26-091710ET
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