The Argentine Tax Authority reduced the periodicity in which insurance companies should comply with existing information systems.
On August 16, 2012, several General Resolutions were published by the Argentine Tax Authority (("AFIP", for the Spanish acronym Administración Federal de Ingresos Públicos) in order to stop tax evasion practices. The main purpose is reducing the periodicity in which certain taxpayers should comply with existing information systems, turning them into monthly reports.
Previously, under General Resolution N° 1432/2003 ("GR 1432") the AFIP had created a reporting system for insurance companies regarding all fees and commissions paid to insurance brokers.
Insurers were required to report on the following bi-annually: (i) information regarding the insurance brokers with which they operated (including name, address, tax identification code, date on which they started operating as insurance broker, registration number, VAT category, etc.); (ii) commissions and fees collected by the brokers as a consequence of transactions in which they participated (including aid paid for travel expenses, salaries, rent and / or office facilities, technology acquisitions, advertising, bonuses and any other expenses incurred by the company), and (iii) receipts issued by the brokers in each transaction (including tax identification unique code, type, number and date of receipt, subject, net value, the amount of VAT deducted, total amount and payment date).
The resolution stated that operations that were performed between January and June each year had to be informed before the last business day of August; and those performed between July and...