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ECONOMY | 26-05-2021 15:46

AFIP promises crackdown in 'wealth tax' enforcement launch

AFIP warns it may seize assets and freeze bank accounts of those who haven't paid up what they owe under the government's so-called 'wealth tax' levy on millionaires.

Argentina's tax authority could seize assets and freeze bank accounts as it applies the government's so-called 'wealth tax' to the country's millionaires.

Those who did not pay the extraordinary one-off capital levy tax before April 16 face possible enforcement actions that had previously been suspended due to the Covid-19 pandemic, the AFIP (Federal Administration of Public Revenue) tax agency (AFIP) said Wednesday.

Hundreds of taxpayers, including famed Boca Juniors footballer Carlos Tevez, have taken the government to court to challenge the tax.

The one-off "Solidarity and Extraordinary Contribution" taxes individuals with assets of more than 200 million Argentine pesos (US$2.1 million) by up to 5.25 percent of their estimated net worth in December 2020.

So far, the tax has raised 230 billion pesos, according to AFIP.

The agency has begun audits of 2,500 taxpayers who have not paid the tax.

In a second ruling, the AFIP granted taxpayers who have not paid up by September 30 the option to pay the amount owed in three installments: 30 percent initially, followed by two monthly payments of 35% percent.

– TIMES/BLOOMBERG

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