Argentina to clamp down on taxpayers with undeclared assets in Panama

The Federal Administration of Public Revenue (AFIP) - a body governed by the Argentine Ministry of Economy - recently announced that negotiations with Panama on the exchange of tax information are progressing positively. According to newspaper Cronista, it is more than likely that the final agreement will be signed by mid-2014.

Panama has asked Argentina to delete the country from its list of "uncooperative" states in matters of tax information. If this is agreed, no obstacles should prevent the agreement being signed.

The Argentine government would thus access data of nationals who have resorted to Panamanian banks to deposit undeclared assets.

Argentina currently divides countries into four categories in terms of tax information. The first one includes countries where there is an effective exchange of information such as neighboring Uruguay and Spain. The second lists countries – such as Switzerland – where an agreement was signed but has not yet become effective. The third category includes nations that are still negotiating with Argentina, such as Panama. The last one is for countries that refuse to disclose data.

According to research by the AFIP, many Argentine taxpayers own undisclosed assets in Uruguay, the United States, Chile, Switzerland, Panama and the Netherlands. The first three countries have not yet signed a full cooperation agreement on tax issues.

Sources

• Cronista