Pablo Porporatto, accountant and Judge of the National Tax Court, left no room for doubt: “The next government will have to think about internal support, without creating new taxes but rather managing tax collection better.".
"In the current context where Argentina is facing international financial restrictions, it is essential to think about tax collection," he said. Customs News This Wednesday, December 4, at the AAEF Tax Court Commission.
The expert added that “the role that AFIP will play will be fundamental. The agency must exploit the information that comes from abroad. Today, the world has become more transparent, which means that undeclared income must be captured.”
"The State must better manage and control taxes; In addition, it makes it easier for the taxpayer to comply through more information and more service," the tax expert said.
“Latin American countries are currently experiencing very complicated times, with a lot of tension and instability, the result of a delicate economic, social and political situation. In this regard, it is worth highlighting the high concentration of income (the highest in the world) and the alarming rates of poverty and indigence,” he said.
In his opinion, "in the face of this complex situation, a State with a fiscal and tax policy is needed that contributes to achieving greater stability in the short term and fostering sustainable and inclusive development in the medium and long term."
Tax situation in Latin America
He explained that “in Latin America the Tax pressure is low, unstable and produces regressive effects on income distribution, concentrating it even more, as indirect taxes (mainly VAT) are the most important source of resourcesIn developed countries, the opposite situation occurs: the tax burden is higher, stable and with effects that counteract the concentration of income, given that direct taxes –on income and assets- are the main source of income.”.
In that sense, he said that “Countries must promote reforms in tax policy and mainly strengthen tax administrations to collect more from those who have more.. It is not necessary to create new taxes, but rather to review the design of the current ones, the exemptions and tax benefits, etc. Evasion is high, especially international. Today, administrative cooperation in tax matters and the exchange of information in particular make it easier to detect undeclared income and assets abroad.”
“It is required More present, efficient and transparent states that will boost the economies of the region and that the benefits of tax collection spread to the whole of society, especially to those who have the least. Sustainable and inclusive development of countries is necessary, and much can be done in this regard from tax systems," he concluded.
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