Province of Buenos Aires: Absence of Tax Liability of Companies’ Administrators without the Demonstration of Negligence or Fraud
The Supreme Court of Buenos Aires confirmed the decision of the Court of Appeals in Civil and Commercial Matters of San Martín, which stated that tax liability of a company can only be extended to its administrators if negligence or fraud is proven. The Supreme Court ratified that Section 21 (at present, Section 24) of the provincial Tax Code is unconstitutional because it allows to extend a company's responsibility for taxes on strict liability basis, in contradiction with the rules of the Argentine Corporations Law in the matter. In other words, the Supreme Court explained that Provinces are not allowed to legislate in relation to administrators' liability in contradiction with the legislation issued by the Argentine Congress.
Sovereign Debt: Litigation and Negotiations Continue
The 30-days grace period to make the payment under the Exchange Bonds issued in 2005 and 2010 lapsed without the parties in re: “NML Capital, Ltd. v. Republic of Argentina” reaching an agreement. Funds transferred by Argentina to make interest payments under the Discount Bonds governed by New York law remain frozen.