Latin America and Caribbean

E. NEW RULES ON TAX AMNESTY, UNREGISTERED EMPLOYMENT AND UNDECLARED ASSETS In December 2008, Congress enacted a new law to encourage taxpayers to regularize the status of undeclared assets, underpaid taxes, and unregistered employees.10 This new law and its regulations created various tax benefits, including the following: * In connection with underpaid or unpaid federal taxes (including income tax) and social security obligations, by adhering to the tax regime provided under this law,11 taxpayers who owed back taxes and social security obligations accrued on or before December 31, 2007, benefited from a significant reduction of interests and a waiver of fines and other penalties, provided diat no final judgment had been rendered regarding such taxes and obligations; * Regarding the registration of unregistered employees, die new tax regime allowed employers to disclose employment relationships existing as of December 24, 2008, as well as understated compensation and false employment starting dates, with a full release from fines and sanctions; and * In connection with reporting and repatriation of assets, this new tax regime offered taxpayers the right to disclose unreported taxable assets while benefiting from preferential tax rates.12 F. SUPREME COURT RULES ON INFLATION ADJUSTMENTS On July 3, 2009, the Argentine Supreme Court (Corte Suprema de Justicia de la Nación) issued a decision in a leading case involving die use of inflation adjustments for tax purposes in 2002.\n121 The New Expropriation Law applies to all urban land that is not being used, or rather considered of public utility and social interest.