AFIP Leads Series of Raids as Crackdown Intensifies

Tax office AFIP today led coordinated raids in 71 different addresses in the city and province of Buenos Aires, Mendoza, and Córdoba, as part of an investigation into irregular financial and currency dealings.

The raids were ordered by a judge after a request from AFIP, which said in a statement released today that it had detected tax and budget “inconsistencies” in four companies. “AFIP detected bank deposits and financial transfers from these four companies with budget inconsistencies, and without the economic or financial capacity to operate with those sums,” read the press release.

The tax office said that the companies “could be acting as a screen to hide the real beneficiaries and allow capital flight,” adding that dozens of banks, currency exchange houses, and stockbrokers may have collaborated in the scheme.

The operation comes amid an intensifying crackdown by authorities on suspected illegal financial activities such as tax evasion, unlawful capital flight, and operating in the parallel currency market.

Today’s raids come a day after AFIP suspended 30 companies from operating in the currency exchange market after they were found to be paying overseas companies for transport services in amounts that were “incompatible” with their fiscal situation.

In addition, the Central Bank said yesterday that it had summoned nine businessmen and four companies to answer questions over their alleged activities in the parallel currency market (commonly known as the blue dollar market).

At the same time, the National Securities Commission (CNV) suspended two stock brokerage firms – Arpenta and JR Bursátil -for not complying with the established laws and norms.

Last week, AFIP suspended Proctor & Gamble’s license to operate in Argentina over suspected tax fraud and illegal capital flight worth over US$150m.

The price of the so-called ‘blue dollar’ has fallen sharply amid the crackdown by monetary and tax authorities, trading below $13, compared to nearly $16 at the end of September.

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