César Litvin warned about the new tax regime: "This doesn't mean that the future will be a 'viva la pepa'"

Following the announcements made by the economic team to facilitate the use of "cushion dollars," tax expert César Litvin analyzed the scope of the new tax system . He clarified that while the government has provided greater freedom for personal transactions and reduced control over smaller-volume cash transactions, this does not mean the administration is abandoning oversight.
During an interview with Infobae en Vivo , Litvin emphasized that the measures do not imply a tax "hurrah." He maintained that the new system eliminates unnecessary demands on ordinary citizens, but maintains oversight of large taxpayers. "The tax authorities previously presumed that everyone was a tax evader. Now the burden of proof is somewhat reversed," he explained.
One of the key changes he highlighted was the increase in the threshold for reporting banking transactions. Previously, transfers of more than one million pesos had to be reported to the tax authorities. Now, that limit rises to $50 million per person, freeing thousands of users from automated control. For Litvin, this decision reflects a shift: "We're moving from a fiscal panopticon to a sniper-like approach."
The specialist stated that, from now on, the administration will focus on the country's 11,000 most important CUITs, as Minister Luis Caputo indicated. However, he cautioned that the relaxation of controls does not extend to anti-money laundering agencies: "The UIF not only won't lose power, but will have a more focused role."
Litvin emphasized that unjustified transactions or those stemming from illicit activities will continue to be investigated. “The UIF maintains all its powers. They don't fall under the radar. On the contrary: they come under the radar,” he stated. He also differentiated between informal money—the product of tax evasion—and dirty money, linked to crime: “The latter does not have any type of amnesty.”
He also anticipated that the second phase of reforms, which will require congressional approval, could repeal certain violations related to the purchase of dollars in informal markets, a common practice among middle-class sectors during years of currency controls. However, he clarified that until laws are passed, there will be no full legal certainty.
Regarding the impact on the real economy, Litvin was cautious. He asserted that only when Congress passes the complementary laws can there be any real legal support for savers who decide to reinvest their funds. "The bills provide the finishing touch to legal security," he stated.
However, he considered that the new regime could encourage those with undeclared funds to deposit them into the system. "Subsequent flows should be taxed accordingly, even though there is greater freedom in the use of the money," he warned. He asserted that the idea is to simplify without relinquishing control.
When asked about the new Income Tax regime, Litvin explained that the proposal is voluntary and applies to taxpayers with specific profiles. Those with significant investments abroad will continue to be subject to property taxes, unless they subscribe to special plans that allow for early payment in several installments.
He also mentioned that it is now possible to bring in money from abroad if it is properly declared, and that the new regulatory framework will aim to strengthen this path. According to his analysis, the State seeks a different relationship with citizens: "It's about building trust. Taxpayers act with more autonomy, but they are still expected to comply."
Litvin acknowledged that these decisions could generate discontent among those who have historically complied with their tax obligations. "Those who paid all their taxes look in the mirror and insult themselves," he said, and admitted that a stronger moral condemnation of evasion in society is still needed.
However, he insisted that this does not imply rewarding informality. "This does not mean that we should stop paying taxes going forward," he clarified. According to the tax expert, ARCA will maintain its oversight capacity, but will use it more precisely, taking unnecessary pressure off average taxpayers.
In his conclusion, he defined the new system as part of a process that is just beginning. "This is a cultural change that will take time. It won't happen tomorrow," he said. Rather than total deregulation, he sees the measures as an attempt to establish a new logic of coexistence between the tax authorities and society, without massive persecutions, but with a focus on what really matters.
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