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Argentina’s new tax amnesty law encourages depositing hidden dollars to boost reserves for IMF debt payments.
Argentina has passed a "tax innocence" law under President Javier Milei to encourage citizens to deposit hidden U.S. dollars—estimated at $251 billion—into banks by reducing penalties for past tax evasion.
The law raises the prosecution threshold for tax evasion to $70,000 annually, shortens the statute of limitations for financial crimes, and eliminates the need to report changes in net worth.
The goal is to boost foreign exchange reserves to meet $19 billion in upcoming debt payments, as required by the IMF.
The initiative, part of a 2023 amnesty program, has already brought in over $20 billion, now freed for use.
Officials urge deposits, especially at state-owned Banco Nación, while critics warn it could enable money laundering.
La nueva ley de amnistía fiscal de Argentina fomenta el depósito de dólares ocultos para aumentar las reservas para los pagos de deuda del FMI.