Resolution No. 118/2020 of the Mining Secretariat – Ministry of Productive Development
CIRCULAR
Mining Law Department Report: Resolution No. 118/2020 of the Mining Secretariat – Ministry of Productive Development
Resolution No. 118/2020 (the “Resolution”) – published in the Official Gazette on November 20, 20 – establishes the procedure for preventive cancellation for a period of one (1) year as of the date of the administrative act that provides for it, for those registered before the Registry of Mining Investments under Law No. 24,196. (the “Registry”) who failed to comply with certain conditions.
The Resolution has been issued as a consequence of two programs of the Mining Secretariat: (1) the Annual Audit Plan (PAF) and (2) the Optimization of the Registry, whose fundamental purpose is to safeguard the fiscal interest and have updated information on the beneficiaries of the regime.
As a consequence of these programs, in order to update the status of the totality of those registered before the Registry, the Mining Secretariat has verified the information filed, detecting from an inquiry to the Tax Authority (“AFIP”), the existence of beneficiaries whose Tax ID has been inactive or withdrawn for more than two (2) years as of December 31, 2019, a situation that has not been reported by those beneficiaries -in a timely manner to the Mining Secretariat- as part of the beneficiaries duty to provide information.
As a result, it has been verified that a large number of those registered have ongoing proceedings initiated, in varying degrees of advancement, which are delayed and even paralyzed due to the failure to deliver the legal notices established by the lack of domiciles due to the situation of inactivity or tax withdrawal mentioned above.
In this regard, the Resolution establishes that the preventive cancellation will proceed when the following conditions are met:
1) To have the Tax ID (C.U.I.T.) of the registered before the AFIP, in an inactive or canceled status, or in a status that that according to the current regulations implies that the beneficiary of the regime is not authorized before the AFIP in the federal taxes for two (2) years as of December 31, 2019.
2) Not having an electronic address constituted under the terms of Section 19, paragraphs b) and d) of the Regulations on Administrative Procedures, by means of Decree No. 1.759/72 – T.O. 2017.
3) Not having used the benefit provided for in Section 21 of Law No. 24,196 or having withdrawn the assets that were brought under such benefit, if used, or the termination of their useful period may be presumed under the provisions of Resolution No. 89 /2019.
4) Not having filed any affidavits in the last two (2) fiscal periods.
In this sense, the Resolution establishes that the preventive cancellation will be declared by means of an administrative act and will become a final cancellation, after one (1) year from the publication in the Official Gazette of the aforementioned act.
Under Section 3, the Resolution states that whoever is removed as a result of the applicability of the Resolution may not apply for registration before the Registry until two (2) years have passed since said removal became final.
The Resolution establishes, under Section 4, the reinstatement procedure. Thus, while the preventive cancellation is in force, the beneficiary may request its reinstatement, as long as the cancellation has not become definitive.
To apply for reinstatement, the following conditions must be met:
1) To reinstate the CUIT status before AFIP with a date prior to filing the application for reinstatement before the Application Authority of Law No. 24.196.
2) Prove the registration before the Ministry of Production Single Regime (R.U.M.P.).
3) Prove the establishment of an electronic domicile under the terms of Section 19, paragraphs b) and d) of the Regulations on Administrative Procedures, Decree No. 1,759/72 – T.O. 2017
4) File the sworn statements, according to the regulations in force at the time of requesting the reinstatement for all the periods due.
In this regard, the Resolution under Section 5 establishes that the preventive cancellation does not imply the resignation of the Mining Secretariat, as the Application Authority, from the application of the sanctions that may apply by virtue of the regulations in force, nor the suspension of the processing initiated or in progress, nor the powers of inspection and audit.
In turn, Section 6 of the Resolution states that the administrative acts that establish the preventive cancellation by enforcement of this Resolution shall be reported to the AFIP.
Please, do not hesitate to contact us should you require any further information on this matter.
Sincerely,
Marcos Moreno Hueyo
Dolores Reyes