Argentina changes tax-review discrepancy tests and formal penalties

The shorter period remains conditional

Article 56 of Tax Procedural Law 11,683 generally gives the tax authority five years for registered taxpayers. The period becomes three years where a registered taxpayer filed on time and, where relevant, regularised the balance, unless ARCA challenges the return for a significant discrepancy against information in its systems or supplied by third parties. This is not an unconditional three-year closure rule.^[2]

Law 27,826 replaces the unnumbered provision following Article 56. Any one of three tests can establish a significant discrepancy: an adjustment increasing assessed tax or reducing losses by at least 15% against the taxpayer's declaration; an increase or loss reduction exceeding the simple-tax-evasion statutory threshold; or specified adjustments involving false documents or improperly credited direct payments. The first limb now measures assessed tax rather than balances in the former wording. The separate de minimis rule for the simplified individual-return regime should not be imported into this general test.^[1][4]

Penalty relief requires the correct category

New Article 49 bis reduces the amounts of fines under Articles 38, 39 and their following unnumbered provisions by 25% as of right. It covers qualifying micro, small and medium-sized enterprises and specified individuals, estates and non-profit entities outside the national Large Taxpayer category. It does not offer every multinational subsidiary an automatic reduction.^[1]

The SME reference is to Article 2 of Law 24,467. That provision delegates classification to the competent authority and expressly requires limitations for companies controlling, controlled by or linked to domestic or foreign economic groups. Local turnover alone therefore should not be treated as sufficient proof of eligibility; the relevant classification must be checked.^[3]

For group tax teams, the affected formal-penalty provisions include omitted returns and information obligations concerning international transactions and country-by-country reporting. Our practical reading is to classify the particular penalty and taxpayer separately, while preserving evidence of timely filing and settlement for the limitation analysis.^[2]

A separate transitional relief regime exists; this article does not assume it combines with the permanent reduction.^[1]