Case law provides a definition of “organized system of payments”

Tribunal “B” of the Federal Tax Court ruled in re “La Angostura SRL”, in a case centering on the applicability of tax on debits and credits in bank accounts.

As per the facts and circumstances described in the Court’s resolution, the taxpayer retails fuels and its customers would pay mostly in cash or with credit cards or debit cards.

It also pays to its main supplier via bank transfers, checks and cash deposits to the supplier’s bank account.

The Tax Authority assessed the tax arguing that the cash deposits in the supplier's bank account should be deemed an organized system of payments structured by the taxpayer to avoid using its own bank account and therefore the 0.6% tax for the relevant debit (i.e. in its own bank account).

The Federal Tax Court concluded that the transactions at stake could not be deemed a “system”, mainly because they would not follow any logical sequence or pattern.

The taxpayer could provide evidence to prove that it would choose how to pay its supplier depending on its financial situation in each particular moment. Therefore, the Court reversed the tax assessment.
 
The Federal Tax Court highlighted that there is no rule requiring the taxpayer to deposit cash in its own account in order to make payments from that bank account. Furthermore, it highlighted that the taxpayer was actually introducing the cash received from its customers into the banking system.

This resolution is relevant because it helps to define a concept which has so far not been defined by the law: the concept of “organized system of payments”.