ARTICLE

The Tax Authority adjusts its provisions in accordance with the recent declaration of unconstitutionality of precautionary measures

By means of Provision No. 250/2010 the Tax Authority has adjusted its provisions in accordance to with recent declaration of unconstitutionality of the rule that had granted to the fiscal agent the power to enact and execute precautionary measures on the taxpayer’s assets when a tax debt was being claimed, without the intervention of the judge.
July 30, 2010
The Tax Authority adjusts its provisions in accordance with the recent declaration of unconstitutionality of precautionary measures
After the “Intercorp” case discussed in our previous newsletter (please see “The Supreme Court decides on the unconstitutionality of provisional injunctions”), the Tax Authority (“AFIP”) amended the guidelines designed to regulate the actions of fiscal agents.

The following are the most important guidelines:

1) The fiscal agent must request the judge to order precautionary measures in the initial filing. Precautionary measures applied on bank accounts should be executed within 72 hours of being ordered by the judge. In case the measures turn out to be insufficient or negative, the fiscal agent shall request the judge to order new ones.

2) The termination of the measure must be ordered by the judge and must be handled on the first labor day following notification to the AFIP of the decision.

3) Fiscal agents may request reports on the existence of safe deposit boxes.

4) If a special payment regime is granted to a taxpayer, the fiscal agent shall require the judge to cancel the measure, as the fiscal agent is unable to annul it unilaterally, unless the precautionary measure was decided by the fiscal agent before June 16, 2010.

Provision No 250/2010 is in effect as from July 16, 2010.

This insight is a brief comment on legal news in Argentina; it does not purport to be an exhaustive analysis or to provide legal advice.