Amendments introduced to Law No. 11,683 by the Fiscal Innocence Law – Tightening of sanctions and reductio of statutes of limitations

Fiscal Innocence Law and the Reform Introduced to Law No. 11,683

I. Introduction

The enactment of Law No. 27,799, known as the “Fiscal Innocence Law,” introduces structural amendments to Law No. 11,683, directly altering the regime of infractions, penalties, and statutes of limitations.

Below is an analysis of the main amendments that come into force as from its official publication.

II. Regime of Formal Infractions

Failure to File Determinative Tax Returns (Art. 38)

The rule updates the penalties for failure to file determinative tax returns within the statutory deadlines. Without the need for prior notice, the fine is set at ARS 220,000 (previously ARS 200) for individuals, increasing to ARS 440,000 (previously ARS 400) for companies, local entities, and permanent establishments of foreign subjects.

Although the typification, automatic procedure, and benefits for early regularization remain in force, the update of the amounts transforms the economic nature of the penalty. The application of a fine of ARS 220,000 without prior notice raises questions regarding proportionality, particularly in cases involving small taxpayers or purely formal breaches with no actual tax damage.

Failure to File Informative Tax Returns (Article added after Art. 38)

This section reflects one of the most significant increases in the regime. Failure to file informative tax returns (one’s own or those of third parties) will be sanctioned, without prior notice, with fines of up to ARS 5,000,000 (previously ARS 5,000), increasing to ARS 10,000,000 (previously ARS 10,000) for legal entities and equivalent subjects.

The regime establishes specific penalties depending on the matter involved:

• Import/export transactions between independent parties: Fine of ARS 1,500,000, increasing to ARS 10,000,000 for companies.

• Transactions with foreign subjects: Base fine of ARS 11,000,000, increasing to ARS 22,000,000 for companies.

This increase equates informative penalties—traditionally considered minor—with those applicable to substantive infractions. Although the measure aligns with international transparency standards, it blurs the doctrinal distinction between formal and material obligations, potentially giving rise to constitutional challenges on grounds of lack of reasonableness.

Non-Compliance with General Formal Duties (Art. 39 and related additions)

For general violations of Law No. 11,683 and other tax regulations, a fine range of between ARS 150,000 and ARS 2,500,000 is established. In aggravated cases (issues related to tax domicile, obstruction of audits, or failure to provide information on international transactions), penalties may reach ARS 35,000,000.

This expansion of the sanctioning range increases administrative discretion, thereby requiring enhanced reasoning in sanctioning decisions.

With respect to non-compliance with ARCA requests (article added after Art. 39), fines will range from ARS 500,000 to ARS 35,000,000. An aggravating factor of up to ten times the maximum penalty is предусмотрed for taxpayers with annual gross income equal to or exceeding ARS 10,000,000,000 upon a third instance of non-compliance. While this threshold protects mid-sized taxpayers, the sanctioning range remains unusually broad, and repeat offenses retain their autonomous character.

III. International Tax Transparency (Second Article Added after Art. 39)

The reform significantly tightens sanctions related to information on international transactions and Transfer Pricing (second article added after Art. 39):

• Multinational Enterprise Groups: Fines ranging from ARS 6,000,000 to ARS 15,000,000 for failure to report membership in multinational groups or data regarding the ultimate parent entity. For groups with revenues below the thresholds, fines range from ARS 1,125,000 to ARS 5,250,000.

• Country-by-Country Report (CbC): Fines ranging from ARS 45,000,000 to ARS 67,500,000 for failure to file, late filing, or filing with serious inconsistencies. Failure to report the designated reporting entity is also sanctioned (ARS 6,000,000 to ARS 15,000,000).

• ARCA Requests: Failure to comply with prior formal duties following a request may result in fines of up to ARS 15,000,000, and failure to provide supplementary information to the Country-by-Country Report will be sanctioned with fines ranging from ARS 13,500,000 to ARS 22,500,000.

IV. Closure and Unregistered Employment (Art. 40)

The penalty of closure for a period of 2 to 6 days will apply when the value of the goods or services involved in the infraction exceeds ARS 20,000 (previously ARS 10). Likewise, those who employ unregistered workers will face fines ranging from ARS 200,000 to ARS 7,500,000, without prejudice to other applicable sanctions.

V. New Statute of Limitations Regime

Amendments to Law No. 11,683 (Art. 56)

One of the conceptual pillars of “fiscal innocence” lies in the reduction of the statute of limitations to three years (Art. 56). This benefit is conditional upon compliance: it applies if the taxpayer filed the tax return on time, paid the tax or regularized the balance, and there is no “significant discrepancy” with the tax authority’s information.

A significant discrepancy is deemed to exist when any of the following conditions apply:

• The determined difference exceeds 15% of the amount declared.

• The difference exceeds the threshold established in Art. 1 of the Criminal Tax Regime.

• The assessment is based on the use of fraudulent documentation.

While this objective definition enhances legal certainty, it restricts access to the benefit in complex audits or those involving technical adjustments.

Additionally, the 120-day suspension triggered by pre-limitation notices is repealed, eliminating a mechanism that indirectly extended limitation periods and thereby reinforcing temporal certainty.

Impact on Local Taxes and Social Security Funds

• Local Taxes: Articles 2532 and 2560 of the Civil and Commercial Code are amended to eliminate the reference allowing local legislation to regulate tax limitation periods. Although the general five-year period is maintained, it is established that limitation periods for provincial, City of Buenos Aires, and municipal taxes will be governed by Law No. 11,683.

• Social Security Funds (Obras Sociales): Laws Nos. 23,660 and 23,661 are amended. A general ten-year limitation period for judicial collection is established, which is reduced to three years for compliant taxpayers, subject to the same conditions regarding the absence of a “significant discrepancy” (difference greater than 15%, criminal threshold, or fraudulent invoices).

The same reduction in the statute of limitations—under identical conditions—applies to the collection of contributions, payments, fines, etc., arising from social security legislation (Art. 16 of Law No. 14,236).

VI. Conclusion

The Fiscal Innocence Law redefines tax procedure through two opposing vectors: a tightening of sanctions and a reduction of limitation periods. The central challenge in its application will lie in harmonizing these changes with the constitutional principles of reasonableness, proportionality, and legal certainty.