Dr María Laura Rozental
This solidarity contribution through Law 27605 promulgated on 18 December 2020 has been created “to relieve the critical situation of Argentina as a result of the pandemic”, and to pay for specific state expenses aimed at collaborating with health services, subsidies for small businesses, students, and public works in popular neighbourhoods, and will reach slightly less than 10,000 people, the richest in the country, according to their statements to the treasury, and could raise between ARS 272.5 billion and 307.9 billion, one time only.
This Law establishes a single contribution of a rate to the assets of individuals who have declared in the tax to “Personal Assets” more than ARS 200 million (although the rate increases according to the estate) and the money obtained would remain in the hands of the national government, because it would not be shared with the different jurisdictions of the country.
The rate to be charged will increase depending on the range of fortune that has been declared.
The Law establishes two tables of aliquots: one on assets located in Argentina, and another on assets located abroad. In general terms, goods in Argentina are taxed at scales between 2% and 3.50%, while those located abroad suffer from increased rates ranging from 3% to 5.25%, which implies that the norm increases the tax by 50%.
Is This Solidarity? Or Confiscation?
Our law firm, Estudio Bercun Abogados, has been working hard on a lawsuit whose purpose is to declare the unconstitutionality of Law 27605, basing our position on the following concepts, among others:
- Unconstitutionality of the solidarity contribution as a tax;
- Violation of the principle of equality in tax matters;
- Confiscatory nature of the contribution;
- Violation of the principle of legal security;
- Violation of the principle of reasonableness and proportionality.
It will be a long-term litigation and it will surely reach the Supreme Court of Justice.
XLNC MAGAZINE | No. 07 | Spring 2021