FOR IMMEDIATE RELEASE
Argentina: We Are Innovation Analyzes New Tax on e-Commerce
* Researcher of the International Foundation wrote a devastating report on the new e-Commerce tax.
* She affirms that it hinders the activity of entrepreneurs and SMEs and will be passed on to consumers.
Córdoba, Argentina (October 13, 2022) — Dr. Marianela Mendoza, Tax Lawyer and Associate Researcher of Fundación Internacional Bases, has written a detailed report about the General Resolution of the Arbitration Commission of the Multilateral Agreement No. 05/2021 regarding the Operations Performed by Electronic Means.
The tax expert explained that “the new tax created by resolution will affect all Argentine e-Commerce as of October 1, 2022”. She also argued that “the Arbitration Commission of the Multilateral Agreement on Gross Income exceeds its powers and alters the guidelines of the Agreement itself by modifying a vital aspect of the Gross Income Tax: territoriality.”
In this sense, the report published by the We Are Innovation network and the Argentine Taxpayers’ Council explains that for a taxpayer to be taxed under the Multilateral Agreement, the such taxpayer must carry out activities in the territory of several provinces. The performance of a single isolated commercial operation is not enough to charge the tax to such a taxpayer.
The Executive Director of the Argentine Taxpayers’ Council, José Cambareri, stated that “the unfortunate measure of taxing e-commerce operations responds to the only mantra that governments pray to cover up the mess of uncontrolled public spending: if something works, tax it.”
Dr. Mendoza concluded that “the Arbitration Commission has created a tax violating the entire constitutional system. At the same time, the tax lacks the consensus of all the provinces and the nation since neither the Co-participation Law nor the rules of the Multilateral Agreement have been modified. Finally, in addition to hindering the activity of any entrepreneur or SME, the price increase will be invariably passed on to the consumer of goods and services”.
The SI Network, which includes more than 30 NGOs and foundations and is present throughout Latin America, the United States, and Europe, announced that it will continue to monitor the situation and promote innovation and e-Commerce.
For more information, visit www.weareinnovation.eu
ENDS
ABOUT WE ARE INNOVATION
We Are Innovation is a network formed by a group of individuals and institutions that believe innovative solutions are how people get involved in solving problems. With more than 30 think tanks and NGOs based in Europe and Latin America, We Are Innovation is the voice of a vibrant civil society that wants to progress through innovation, the adoption of new technologies and human creativity. Visit https://weareinnovation.global/ to learn more.
