In Argentina, the tax Amnesty ended. It allowed the owners of undeclared assets to be disclosed, pay a small fine, and be fully legalized. The results are impressive: it became known about 116 billion assets in Argentina and the world, and tax and penalty fees amounted to 9.2 billion.
On March 31, 2017, the 8-month Amnesty program in Argentina ended. 250 thousand people and companies declared their assets, which in fact doubled the tax base of Argentina. 96% of those who declared are private individuals.
Until December 2016, the penalty tax rate for amnesties was 10%, and until the end of March, including for undeclared real estate 15%. The program allowed assets not to be returned to Argentina, although many eventually transferred their funds back to the country.
Tax Amnesty: Argentina, Ireland, Italy remind of the last opportunity to declare assets without consequences
It is quite easy to assess the result of Argentina: the last Amnesty managed to collect only 4.69 billion, plus 2.59 for the second round of Amnesty from 2013 to 2015. Colleagues in the region collected even less: Chile in 2015 collected 1.6 billion for 20 billion declared assets and in Brazil disclosed 50 billion (against 116 for Argentina).
The Latin American country failed to break the record only Indonesia, which with the help of Amnesty disclosed a record 330 billion.
Of the total amount, 93 billion were stored or are stored outside of Argentina. Although experts say that the Argentines keep 400 billion in offshore accounts, so far they have disclosed much less. But this does not make the achievement of the program less significant.
Argentina and Brazil are collecting their first “harvest” from the tax Amnesty
In Europe, the automatic exchange is not yet very much believed in, and there are good reasons for this. And trust in the authorities has not yet reached the necessary values to return hundreds of billions of dollars under the supervision of the tax authorities.
But in general, we see that Amnesty is either successful or very successful in almost any part of the world. Italy has collected 4 billion euros in taxes and continues to hunt for undeclared income. In Indonesia, 330 billion were disclosed. In Argentina, 116 billion were disclosed.
Europe modestly reported on a couple of thousand declarations and did not go into the figures much. Instead, complaints began to arrive that the tax authorities arranged mass checks of those who declared large assets they did not believe that the person really disclosed what is.
It is not surprising that the level of trust does not grow against this background.
Foreign banks in Argentina will be able to operate without a license
And Argentina, which went through a default recently, which a couple of years ago was riding a roller coaster of instability and unpredictability, up to the risk of another bankruptcy, has successfully won a little money and reputation, both on the international stage and among its own citizens.
Part of the collected money will be used to pay for pensions in the country.
Amnesties are held all over the world. Some of them are hard, others are softer. However, in general, against the background of concerns about the automatic exchange, transparency, and transfer pricing rules, they work.