The head of ARCA admitted the "ineffectiveness of the organization" and asked Congress to approve a key law.
Juan Pazo also said that "there has been no investment in technology over the last seven years, even though that is the key to revenue collection."
Juan Pazo, the new head of ARCA.
The Executive Director of the Customs Collection and Control Agency ( ARCA ) , Juan Pazo , admitted that the agency remains ineffective despite the changes implemented, and revealed that in VAT alone tax evasion reaches 37%, when speaking at the college and is at "levels similar to those of the 2001 crisis."
According to sources at ARCA , Pazo said at the luncheon that the agency has "an inefficient administration" and explained that "there has been no investment in technology over the last seven years, even though that is the key to revenue collection."
"ARCA is an ineffective agency," he acknowledged , but highlighted the changes being made to finally bring the agency up to par with the world's largest.
Pazo spoke before key partners of major Argentine law firms.
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The former head of the AFIP ( Federal Administration of Public Finance) warned of the need for Congress to approve the bill so that Argentines can use the dollars in their savings account without problems. This bill, which modifies the criminal tax law and the tax procedure regime, would incentivize the use of dollars in Argentina without controls.
According to the government, there would be between USD 250 billion and up to $400 billion, according to what President Javier Milei said at the time. Pazo emphasized that this administration reduced the structure of the former AFIP by 32% and also eliminated 45% of senior positions.
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