The Agencia de Recaudación y Control Aduanero (ARCA) in Argentina has started a new round of automatic recategorizations for monotributistas based on inconsistencies between reported expenses and earnings, detected through data from bank transactions and virtual wallets. This process has caused significant concern among small taxpayers who find themselves classified into higher categories than they had previously declared, potentially leading to higher taxes and economic burden.

In response to these automatic classifications, monotributistas are granted the right to contest the decision made by ARCA. The article outlines the steps taxpayers can take to challenge the classifications if they believe that the data used for their recategorización is incorrect. It highlights the importance of acting quickly due to legal deadlines that can lead to sanctions if not adhered to.

This ongoing situation places a spotlight on the tax compliance landscape for small businesses in Argentina and raises questions about the efficiency and fairness of the data analytics tools employed by tax authorities. As ARCA seeks to improve tax compliance through data scrutiny, it also exposes small taxpayers to potential financial strain, emphasizing the need for clear communication and support from the authorities during this process.