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Argentine Tax Administration Issues Circular Clarifying that Fines and Other Penalties Imposed by Regulating Agencies are Non-Deductible — Orbitax Tax News & Alerts

The Argentine tax administration (AFIP) recently issued Circular 1/2015, which clarifies the AFIP's position that fines, and other administrative, disciplinary and criminal penalties imposed by regulating agencies on banks, insurance companies and other financial institutions are non-deductible for tax purposes. Regulating agencies specified in the Circular include Argentina's Central Bank (BCRA), the Financial Intelligence Unit (UIF- investigates money laundering), the National Securities Commission (CNV), and the National Insurance Superintendency (SSN).