Argentina, Costa Rica Sign Deal To Track Down Hidden Funds
BUENOS AIRES -(Dow Jones)- Argentina has signed an agreement with Costa Rica
to share banking information, in the latest move to tighten the noose on
Argentines with cash hidden in overseas tax havens.
Similar agreements were recently signed with Andorra and Monaco.
The deals are designed to stop tax evasion and fraud by exchanging tax
information, lifting banking secrecy and allowing agents to conduct
investigations overseas, according to the Ricardo Echegaray, director of
Argentina's tax agency, or AFIP.
Argentina is expected to sign similar deals next week with the Bahamas and San
Marino, in addition to a customs information agreement with Russia, AFIP said in
a press release Tuesday.
The government is also working to reach financial information sharing
agreements with a number of additional tax havens such as the Cayman Islands,
Dutch Antilles, Aruba, Barbados and Jersey.
The push comes as part of a drive to catch tax cheats who failed to come
forward before the Aug. 31 end of an amnesty program for Argentine companies and
individuals with hidden funds and unpaid taxes.
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.
According to various estimates, Argentines have well over $100 billion in
funds invested overseas.
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
11-24-091221ET
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