Argentina
The Senate turned Inocencia Fiscal II into law and approved the transfer of judicial powers to the City
The tax initiative was passed with 44 votes in favor and 23 against, with backing from allies of the governing coalition. In the same session, the transfer of juvenile justice and criminal powers to the City of Buenos Aires also moved forward.
The Senate approved on Thursday the so-called Inocencia Fiscal II, a reform promoted by the Government that secured 44 affirmative votes and 23 negative votes. According to Infobae and Clarín, the governing coalition gathered support from the PRO, the UCR and provincial blocs, while Peronism voted against it in rejection of what it considers a new amnesty scheme.
The measure expands access to the Simplified Income Tax Regime. According to what was reported by Infobae and Clarín, under the previous scheme those who had earned more than 1,000 million pesos or held assets above 10,000 million pesos in any of the last three years were excluded.
Another of the changes incorporates the criterion of significant discrepancy to define when the tax authority may challenge a filing. Infobae noted that if the detected difference is 15% or more but does not exceed five million pesos, it will no longer be considered significant. Clarín, for its part, highlighted that ARCA may intervene when it detects an inconsistency that implies a 15% difference in the tax the taxpayer should pay.
During the debate, libertarian Senator Bruno Olivera defended the proposal and said it aims to stop treating taxpayers as permanent suspects. From the Justicialist bloc, José Mayans reiterated the bloc’s rejection, arguing that the law is linked to the Government’s economic program. Jorge Capitanich also questioned the committee review and Fernando Salino proposed expanding the restrictions to include relatives of officials, although the governing coalition did not accept changes and the text was voted on without modifications, according to Infobae.
The law also sets December 31, 2027 as the deadline to access the benefits of presumption of accuracy and tax shield, according to Infobae.
In the same session, the upper house approved the agreements between the Nation and the City of Buenos Aires to transfer juvenile justice and criminal powers, with 44 votes in favor and 21 against. According to Infobae, the agreement transfers to the City the criminal and juvenile correctional justice system, including the investigation and prosecution of non-federal crimes committed by adolescents from age 14 until before turning 18.
The transfer also covers adults charged together with minors for the same acts or related acts, with the aim of keeping the investigation and prosecution unified. For minors under 14, the agreement provides for judicial protection interventions, according to the same outlet.
During that debate, Capitanich again questioned the measure and warned, according to Infobae, about the asymmetries it could deepen in terms of fiscal federalism, given that it is a transfer accompanied by funds to the City of Buenos Aires.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not do its own reporting on this event.
