New tax on cell phone companies’ invoices

With 55 votes in favor and 1 against, the Senate passed on December 2, 2009 the bill that provides for the creation of the ENARD. Currently, the bill is under consideration of the Executive Branch. If the Executive approves the bill, the law will be enacted and the ENARD will be incorporated as a non-state public law legal entity. ENARD’s aim will be to manage and coordinate specific economic benefits for the implementation and development of policies oriented to high performance in sports.    

The resources obtained by the ENARD will have to be applied exclusively:

a) to award grants to sportsmen and sportswomen dedicated to sports activities and competitions;

b) to complement the Secretariat of Sport’s subsidies, in order to contribute with the expenses that would arise due to the participation in international sports competitions included in the official calendar of the respective international federation and in the annual budget, approved by the Executive Board of Directors;

c) to contribute with the fees of the coaches and trainers related to high performance in sports;  

d) to hire specialists in sciences applied to sports and to acquire the necessary elements for sportsmen and sportswomen’s training;

e) to economically provide back up for the organization of national and international competitions to be performed within the territory of Argentina;

f) to guarantee medical coverage for sportsmen, sportswomen, coaches and trainers included in this regime;

g) to contribute with the maintenance expenses of Secretariat of Sport’s anti-doping laboratory;

h) to support Paralympics sportsmen and sportswomen;

i) to implement plans, programs, projects and actions related to high performance in sports.

The Secretariat of Sport (an agency of the Ministry of Social Development) and the Argentine Olympic Committee will be charter members of the ENARD.

The ENARD will have the following bodies: i) the Members’ Meeting; ii) the Executive Board of Directors; iii) the Supervision Committee; and iv) the Performance Review Board. Former Olympics or high performance sportsmen and sportswomen will be able to hold offices in the Members’ Meeting and in the Executive Board of Directors.

The members of the above mentioned bodies will be appointed for coincident periods with the “Olympiad”. An Olympiad is a period of four consecutive calendar years, beginning on January 1 of the year that an Olympic Games takes place, and ending on December 31 of the subsequent fourth year. 

ENARD’s actions and activities will be financed by the following resources:

a)  1% tax on the prices that the cell phone companies invoice to their clients, net of VAT. The amounts must be transferred by the companies within 30 days of reception to an account that the ENARD will have in the Argentine National Bank;

b)  the contributions, donations and subsidies performed by whether public or private legal entities or natural persons.

This regulation will impact on cell phones companies’ clients. Moreover, it must be taken into account by high performance sportsmen and sportswomen, and by the companies that have executed sponsorship agreements with them.