IMPOSITIONAL GENERAL DIRECTION

Decree 645/98

Please note that the above-mentioned agency shall impute the manufacturers or intermediaries referred to in article 3 of General Resolution No. 3708, the breaches of Decree No. 937/93, which provide a subsidy to encourage the re-equipment and modernization of the country ' s productive structure.

Bs. As., 04/06/98.

B. O.: 10/06/98.

VISTO Issue No. 251.974/97 of the registration of the FEDERAL ADMINISTRATION OF PUBLIC INCOME, dependent on the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, and

CONSIDERING:

That Decree No. 937 of 5 May 1993 established a grant to encourage the re-equipment and modernization of the country ' s productive structure.

That such a subsidy, suspended from the validity of Decree No. 977 of 20 August 1996, consists of an agreed tax refund for the benefit of investments in capital assets destined for the realization of economic activities in the country.

Although Decree No. 937 of 5 May 1993 referred to manufacturers who produced and sold such goods, it had been understood that the subsidy should have also reached the operations to be carried out by concessionaires or official representatives.

It is characteristic of the market of capital goods that a large part of the production is commercialized through this intermediation, so that it has been necessary to consider this circumstance in order not to prejudice the purposes of Decree No. 937 of 5 May 1993 or the position of a wide segment of operators of the sector.

That in that intelligence, General Resolution No. 3708 of 14 July 1993 of the IMPOSTITIVE GENERAL DIRECTION, at that time dependent on the former - SECRETARIAT OF PUBLIC INCOME, under the MINISTERY OF ECONOMY AND OURS AND PUBLIC SERVICES, gave rise to the opening of the regime to the intermediaries referred to.

On the basis of its registration in the Register referred to in article 2 of Decree No. 937 of 5 May 1993 (confronting Resolution of the former - SECRETARIAT OF INDUSTRIA And TRADE under the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, No. 162 of 14 May 1993), the concessionaires and official representatives have assumed the status of interested parties in the marketing chain of the goods involved; status ratified by them on the occasion of each operation carried out through them.

That reasons for fairness require that the duties inherent in such brokering entail the responsibility of such subjects for violations of Decree No. 937 of 5 May 1993; leaving the manufacturers safe, as such illegals are not charged to them personally.

That for this, it is taken into account that, in the absence of other normative provisions, the general principles on liability can only be adhered to, attributing it to the various operators of the regime, depending on the facts of each.

That, as a precedent, it should be noted that this attributive criterion of responsibility, has been recognized by the automotive industry sector represented in the Compromise Act of 24 February 1994, signed between the Association of Automotive Manufacturers and the Association of Concessionaries, with the intervention of the ex-SECRETARIA DE INDUSTRIA, under the MINISTERIO DE ECONOMIA AND ARTH.

That in another order, it is clarified that the subsidy of Decree No. 937 of 5 May 1993 does not give rise to the apportionment of expenses referred to in article 80 of the Law on Taxation of Gains (adopted text 1997).

That the General Directorate of Juridical Questions of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES has taken the intervention that belongs to it.

That this Decree is issued in the use of the powers conferred by article 99, paragraph 2, of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1- The IMPOSTITIVE GENERAL DIRECTION of the FEDERAL ADMINISTRATION OF PUBLIC INCOMES under the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, shall impute the manufacturers or intermediaries indicated in article 3 of General Resolution No. 3708 of 14 July 1993 of the IMPOSITIONAL DIRECTION,

The responsibility of each of them for the facts that are charged to them individually shall not affect the situation of the other subjects participating in the marketing chain.

Art. 2°- When the manufacturers had transferred the goods to their official dealers or representatives for a price exceeding that authorized by article 4 of Decree No. 937 of 5 May 1993 and its supplementary rules Resolutions of the former - SECRETARIAT OF INDUSTRIA under the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, Nros. 21 of 13 January 1994 and 276 of 3 November 1994, the IMPOSTITIVE GENERAL DIRECTION, of the FEDERAL ADMINISTRATION OF PUBLIC INCOME, dependent on the MINISTERY OF ECONOMY AND ARTS AND PUBLIC SERVICES, will provide the loss of profit and refund to the same of a sum commensurate to the differences in the prices referred to and up to that permissible.

Art. 3°- If the infringement outside of the concessionaire or official representative, the IMPOSITTIVE GENERAL DIRECTION of the FEDERAL ADMINISTRATION OF PUBLIC INGRES, dependent on the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICEs, will require the restitution of an amount proportional to the difference of the invoiced price in excess to the definitive user of the good and to the maximum amount received in the tax refund.

Art. 4°- In the other cases of violation of the regime of Decree No. 937 of 5 May 1993, the General IMPOSITIVA DIRECTION under the FEDERAL ADMINISTRATION OF PUBLIC INCOME, dependent on the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, shall require the return of tax refunds paid unduly, according to the principle of individual responsibility.

The above paragraph applies to the case provided for in article 7 of Decree No. 937 of 5 May 1993.

To that end, the above-mentioned body shall issue the relevant rules, including with retroactive effect, as soon as the latter is necessary and legally appropriate.

Art. 5°- The SUBSECRETARIA DE INDUSTRIA, under the SECRETARIAT OF INDUSTRIA, TRADE AND MINERIA, under the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, will take action in the issuance of the supplementary provisions of this decree that correspond to its competence.

Art. 6°- The tax refund of Decree No. 937 of 5 May 1993 does not give rise to the apportionment of expenses provided for in article 80 of the Law on Taxation of Gains (text ordered in 1997).

Art. 7°- The provisions of the preceding articles shall apply to all proceedings pending, whereas there is no firm and past resolution in the authority of a judged person.

Art. 8°- Contact, post, give to the National Directorate of the Official Register and archvese. - MENEM. - Jorge A. Rodriguez. - Roque B. Fernández.