AFIP to ARCA: Milei government announces ‘dissolution’ of tax bureau

[Finance Prof]

Great news! This is needed! I would rejoice if they blew the IRS up!

AFIP to ARCA: Milei government announces ‘dissolution’ of tax bureau

Argentina’s government says it will shutter AFIP tax collection agency and replace it with ‘Agencia de Recaudación y Control Aduanero (ARCA); Move will see 34% reduction in staffing levels.

www.batimes.com.ar

 

[Betsy Ross]

Great news! This is needed! I would rejoice if they blew the IRS up!

AFIP to ARCA: Milei government announces ‘dissolution’ of tax bureau

Argentina’s government says it will shutter AFIP tax collection agency and replace it with ‘Agencia de Recaudación y Control Aduanero (ARCA); Move will see 34% reduction in staffing levels.

www.batimes.com.ar

Some of the salaries of these employees were insane! And most of them doing nothing at all. All hired by CFK.

 

[Vince]

Some of the salaries of these employees were insane! And most of them doing nothing at all. All hired by CFK.

I know someone that had one of these positions. You are right that they don't do anything. This is a cousin of someone that lives in my building. The guy makes about $25,000 Dollars per month and is always with his cousin who is retired drinking coffee at the corner place.

 

[legend]

Finally, someone is addressing the AFIP! Instead of solving people's problems, they always make things more complicated. It’s true that the salaries there are outrageously high and don’t match the work they do, plus they’re not even friendly. Dealing with any paperwork there is always a headache.

https://twitter.com/x/status/1848441390172360793

 

[oil rush]

It doesn't really matter what they call it. They just need to totally reform the tax law. A name change isn't going to do it. They need to really push and change all of these cumbersome tax laws and cut the number of taxes. Individuals and businesses will keep cheating until they change it.

 

[earlyretirement]

It doesn't really matter what they call it. They just need to totally reform the tax law. A name change isn't going to do it. They need to really push and change all of these cumbersome tax laws and cut the number of taxes. Individuals and businesses will keep cheating until they change it.

Totally agree! They need to blow up the tax system and really start all over. It needs to be thought out well. I did everything in white when I had a company because my goal was always to get acquired from a multi-national company. I knew that unless I did, wasn't any way any foreign company would buy my firm. That was my saving grace.

But it was very crazy. Argentina has these totally crazy taxes. For example, in a corporation, they tax called the "Impuesto a los Creditos y Debitos en Cuentas Bancarias". Basically a debits and credits tax. So they would charge you 0.6% for every check you deposited and 0.6% for every check you write! So 1.2% out the door for basically nothing. It applied for all bank accounts opened in Argentina.

We could write some of it off as a credit against some corporate income tax but it was just crazy to see this sort of thing. Tons of other examples out there. When you have crazy taxes like this, it causes companies to want to do things under the table.

 

[Vince]

Totally agree! They need to blow up the tax system and really start all over. It needs to be thought out well. I did everything in white when I had a company because my goal was always to get acquired from a multi-national company. I knew that unless I did, wasn't any way any foreign company would buy my firm. That was my saving grace.

But it was very crazy. Argentina has these totally crazy taxes. For example, in a corporation, they tax called the "Impuesto a los Creditos y Debitos en Cuentas Bancarias". Basically a debits and credits tax. So they would charge you 0.6% for every check you deposited and 0.6% for every check you write! So 1.2% out the door for basically nothing. It applied for all bank accounts opened in Argentina.

We could write some of it off as a credit against some corporate income tax but it was just crazy to see this sort of thing. Tons of other examples out there. When you have crazy taxes like this, it causes companies to want to do things under the table.

My wife complains all the time about all the whacko taxes here. You are right that until they fix these things, companies will just operate under the table. 21% tax on everything is beyond crazy. No one wants to pay 21% tax on professional services so it is this constant revolving door of the customer not wanting to pay this, the business owner not wanting to pay all of these crazy taxes and it will take a change in law to fix it.

 

[Betsy Ross]

Here was an article on the topic too.

Why Argentina President Javier Milei Dissolved Tax Agency AFIP | Details

Argentine President Javier Milei announced on Monday the dissolution of the country's tax agency, the Administración Federal de Ingresos Públicos (AFIP), as part of a government effort to reduce inefficiencies. A new entity, the Customs Revenue and Control Agency (ARCA), will be established in...

www.timesnownews.com

 

[Spring]

Indeed, the government will save a lot of money; it was about time someone took charge of the situation.

 

[Larry]

Finally something we can all agree on! AFIP is horrible but they aren't really getting rid of it. Just a name change.

 

[Piranha]

Finally something we can all agree on! AFIP is horrible but they aren't really getting rid of it. Just a name change.

I don't know anyone that has anything positive to say about AFIP. Thieving criminals. No one will miss them except all those that had jobs there.

https://twitter.com/x/status/1848733305052520739

 

[earlyretirement]

AFIP, the Argentine Federal Administration of Public Revenues, receives 1.9% of the Total Shared Resources to finance itself.

This allocation is significant as it surpasses the amount received by 12 Argentine provinces for co-participation. This information comes from a study by CEFIP, highlighting the substantial financial resources allocated to AFIP compared to several provinces in Argentina.

Co-participation refers to the distribution of national tax revenues to provincial governments, which is a critical source of funding for many provinces. The fact that AFIP's funding exceeds that of 12 provinces is crazy and shows why President Milei wants to close/restructure it and get rid of many of the employees there.




A shocking 80% of their budget was for salaries and many of these were most likely ñoquis.

Milei shuts down Argentina's tax agency

AFIP is an "unnecessary bureaucracy" that stifles economic freedom, says Milei's government.

reason.com

 

[Vero]

AFIP, the Argentine Federal Administration of Public Revenues, receives 1.9% of the Total Shared Resources to finance itself.

This allocation is significant as it surpasses the amount received by 12 Argentine provinces for co-participation. This information comes from a study by CEFIP, highlighting the substantial financial resources allocated to AFIP compared to several provinces in Argentina.

Co-participation refers to the distribution of national tax revenues to provincial governments, which is a critical source of funding for many provinces. The fact that AFIP's funding exceeds that of 12 provinces is crazy and shows why President Milei wants to close/restructure it and get rid of many of the employees there.

View attachment 7874

That is shocking. That puts things in perspective. Wow, that is a lot of money.

 

[Finance Prof]

It will be interesting to see how much the new company slashes their spending down to. All these AFIP employees are crying and protesting. I doubt they will have anyone on their side. Everyone hates them!

 

[Vince]

It will be interesting to see how much the new company slashes their spending down to. All these AFIP employees are crying and protesting. I doubt they will have anyone on their side. Everyone hates them!

Tax authorities are not efficient anywhere. Besides reigning in on some of these high paying jobs, I doubt there will be any big changes with taxes.

 

[Kirsten G]

I don't know anyone that has anything positive to say about AFIP. Thieving criminals. No one will miss them except all those that had jobs there.

https://twitter.com/x/status/1848733305052520739

You're right, they’re always putting up obstacles and making it harder for hard-working people who are just trying to get ahead. I've heard many entrepreneurs complain about the treatment they've always received from AFIP, never making the processes easy. I even know of many who had to hire accountants for simple tasks that should be easy for users to do themselves. Hopefully, everything will be more practical from now on. Some shameless employees are protesting to keep their privileged salaries

https://twitter.com/x/status/1849533973740884467

 

[legend]

They want to blame Milei for the incident that happened on Monday when an AFIP employee jumped from the ninth floor. It's clear that he had psychiatric issues, and fortunately, he miraculously survived.

Milagro: Empleado de la AFIP se tiró del 9.º piso, pero se salvó por los cables

Este lunes un empleado de la AFIP se arrojó al vacío desde el 9.º piso donde vive, pero sobrevivió. El hombre contó los motivos en una carta.

urgente24.com

 

[Uncle Wong]

I read this article and it said they are going to cut all those jobs and only save $6.5 Million USD per year? Is this correct? I'd think it would be much more than that.

Javier Milei Abolishes the Argentine IRS

The Argentine president will reorganize the Federal Administration of Public Revenue into a new agency and reduce its head count by a third.

www.theamericanconservative.com