Recent Tax Information Exchange Agreements Signed by Argentina

In 2011, Argentina executed Tax Information Exchange Agreements (TIEAs) with 4 low-tax jurisdictions: Jersey, Guernsey, Bermuda, and the Cayman Islands. Previously, in 2009, Argentina had executed similar TIEAs with other low-tax jurisdictions: San Marino, The Bahamas, Andorra, and Monaco.

Of the abovementioned, only the agreements signed with Monaco and Bermuda are in force.

The TIEAs essentially follow the Model Agreement on Bilateral Exchange of Information on Tax Matters issued by the OECD, since the OECD is the international organization setting standards on tax information exchange and other cross-border matters.

The most recent TIEA executed by Argentina is the one with the Cayman Islands, signed in October, 2011 (the “Agreement”).

Pursuant to the Agreement, the parties must provide each other with assistance through exchange of information relevant to Argentina’s Income Tax, Value Added Tax, Personal Assets Tax, and Tax on Presumptive Minimum Income, and to any similar tax imposed by the Cayman Islands.

Information provided under the Agreement shall be deemed confidential, although it may be disclosed in public court proceedings and in judicial decisions.

The scope of the Agreement includes, for instance, taxpayers’ data held by financial institutions or agents, and information on ownership of companies, partnerships, trusts, foundations and more.

When making a request for information under the Agreement, the applicant party shall demonstrate the foreseeable relevance of such information for the tax purposes established by the Agreement. To that extent, the applicant party shall provide the requested party with the following:

1. identity of the person under investigation,
2. the tax purpose for which the information is sought,
3. the grounds for believing that the information is held by the requested party or by a person within its jurisdiction,
4. a statement that if the requested information was within the jurisdiction of the applicant party, such party would be allowed under its own laws to obtain such information, and
5. a statement that the applicant party has pursued all means available in its own territory to obtain the information but failed to find it.

The requested party shall use all available measures to obtain the information.
A request may be rejected where:

1. the information is neither held by the authorities nor by persons within the requested party’s jurisdiction,
2. the applicant party would not be able to obtain the information under its own laws; or
3. providing the information would be against public policy, violate any protected secret or trade process, or violate attorney-client privilege.

The Agreement will enter into force 30 days after each party gives notice of the internal approval of the Agreement under its respective domestic laws.