Congress Approves Law Amending the Tax Criminal Regime

1.Updated thresholds for the application of criminal offenses provided by the Criminal Tax Regime

The monetary thresholds for qualifying for a tax criminal offense have been updated, as detailed below:

•    Simple Tax Evasion: from AR$1,500,000 to AR$100,000,000 per tax, per fiscal year.

•    Aggravated Tax Evasion: from AR$15,000,000 to AR$1,000,000,000 per tax, per fiscal year.

•    Aggravated Tax Evasion (Special Cases ): from AR$2,000,000 to AR$200,000,000 per tax, per fiscal year.

•    Aggravated Tax Evasion (Special Cases ) and Improper Use of Tax Benefits: from AR$1,500,000 to AR$100,000,000 per tax, per fiscal year.

•    Misappropriation of Taxes (Withholding Agents): from AR$100,000 to AR$10,000,000 per month.

•    Simple Evasion (Social Security): from AR$200,000 to AR$7,000,000 per month.

•    Aggravated Evasion (Social Security): from AR$1,000,000 to AR$35,000,000 per month.

•    Aggravated Evasion (Special Cases – Social Security ): from AR$400,000 to AR$14,000,000 per month.

•    Misappropriation of Social Security Contributions: from AR$100,000 to AR$3,500,000.

•    Simulation of settlement of tax obligations: from AR$500,000 to AR$20,000,000 per tax, per fiscal year (for tax obligations) and from AR$100,000 to AR$3,500,000 per month (for Social Security contributions).
These amounts will be adjusted annually starting January 1, 2027, based on the variation of the Units of Purchasing Value (Unidad de Valor Adquisitivo, UVA) accrued during the preceding calendar year. For purposes of determining the existence of criminal offenses or other violations, the applicable amount will be that in force at the time of commission.

2. Effects of the payment of the evaded taxes and related interest
The law establishes new conditions for extinguishing criminal actions.
Specifically, the law provides that the tax authority will not file a criminal complaint when the amount of the evaded, improperly obtained, or misappropriate tax obligations and related interest is fully and unconditionally settled prior to the filing of the complaint. This option may be exercised only once by each individual or legal entity subject to the obligation.
Furthermore, once criminal proceedings have commenced, the law establishes that such action may also be extinguished if the taxpayer accepts and fully complies with the evaded, improperly obtained, or misappropriated obligations and related interest, plus an additional amount equal to 50% of the total sum, within 30 business days following the procedural act by which the criminal charge is formally notified. Based on the wording of the statute, this option does not appear to be limited to a single use.

3. New cases of abstention from filing a criminal action
The law introduces two new scenarios under which the tax authorities will not file a criminal complaint:
(a) When taxpayers adequately report and justify the criteria used to calculate the declared tax through the submission of a note to the tax authorities prior to or simultaneously with the filing of the corresponding tax return, provided that the approach invoked is not intended to distort the tax base.
(b) When taxpayers file original or amended tax returns before receiving notice of an audit concerning the relevant tax and period.