HomeTaxAbad: "Cash is the best platform for evasion"

Abad: «Cash is the best platform for evasion»

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Within the framework of the Tax News Cycle organized by the Professional Council of Economic Sciences, it was highlighted this Wednesday (07.03.2017) that the “Using cash is the best platform to evade" while assuring that"We Argentines are structurally informal".

There, Abad recalled that VAT evasion is 30%, in Profits it is more than 40% and 57,5% of the self-employed are in the lowest categories.

In his speech, the head of the tax agency recalled that "the AFIP has already is working on making the use of debit cards mandatory for commerce"retailers, wholesalers, professionals and self-employed workers" and added that those who start using the POS "will not pay the cost of the terminal for two years."

In front of hundreds of accountants, the official reflected: “The first excuse is that when they take away our evasion channel, we complain. In this way we are paying for the party of the informals. That is why it is a cultural change  “Do we want to live within the law or in informality?”

Regarding oversight strategies, Abad announced the use of technology to detect inconsistencies of taxpayers. “We have moved from a model of variable crossing to a predictive model of patterns of behavior,” said the federal administrator, adding that “the role of the observer must be assumed by software.”

Finally, Abad assured that The best strategy is to “broaden the base” "so as not to raise the rates." 

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Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.

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