Owners of Sports Boats Intimidated Over Tax Debt Exceeding 10 Billion Pesos

Owners of Sports Boats Intimidated Over Tax Debt Exceeding 10 Billion Pesos

The Provincial Collection Agency (ARBA) has started to inform nearly 30,000 taxpayers, primarily sports boat owners, who collectively owe more than $10 billion in provincial taxes.

An inspection operation conducted over the weekend at the Regatas club in Ensenada resulted in the seizure of two boats that had a combined tax debt of over $2.5 million.

The agency has identified 29,530 taxpayers who own 30,926 sports boats that are now under scrutiny.

ARBA Director Cristian Girard said that recovering tax debt from the wealthiest sectors is crucial, and emphasized that the agency is determined to enforce tax compliance, especially as the debt exceeds $10 billion.

Girard compared the magnitude of this tax debt to the teacher incentive funds that Buenos Aires Governor Axel Kicillof decided to pay, despite budget cuts from Javier Milei’s government. The incentive amounts to approximately $8.5 billion.

Girard was emphatic about the agency’s tough stance on tax compliance, stating that they will be uncompromising with sectors that evade tax obligations. He highlighted that this is the first time the agency has seized sports boats due to tax evasion.

Girard pointed out that some of these boats have a market value of over $30 million, and criticized owners who evade taxes despite their wealth.

ARBA conducted an inspection in Ensenada, targeting sports boats with tax debt.

Girard refuted claims that these operations are “capricious persecution,” emphasizing the goal is to ensure that the wealthier taxpayers are also abiding by tax laws.

In recent weeks, ARBA has intensified its inspections of the nautical sector and luxury properties that are not declared.

Girard has been proactive in detecting tax evaders, and has now been authorized to seize yachts, boats, and jet skis found to be evading the Sports or Recreation Tax.

Procedures, fines and withholdings

In the area of Nordelta, Tigre match, ARBA detected over 45,000 square meters of undeclared constructions and seized two yachts with a combined tax debt of over $1.5 million.

Inspections in San Fernando led to the resolution of tax debt for eight luxury yachts with a total debt of $15 million.

Similar inspections were conducted along the Atlantic Coast. In Pinamar, satellite imagery identified over 70,000 square meters of undeclared construction, including 215 luxury houses and 17 high-rise buildings.

Developers and owners who evaded the Real Estate Tax by declaring their buildings as vacant now face fines of up to $25 million.

In Mar del Plata, ARBA found more than 120,000 undeclared square meters, belonging to 57 high-rise buildings and over 200 houses in gated communities.

ARBA plans to continue these types of controls to reduce tax evasion and recover debt from those with greater financial capacity. These controls will extend to various areas and communities within the Buenos Aires territory.