What role does AFIP play in tax compliance?

AFIP, which stands for the Federal Administration of Public Revenue in Argentina, plays a crucial role in overseeing tax compliance and enforcement. This agency is responsible for ensuring that individuals and businesses adhere to tax laws and regulations. It conducts audits, investigations, and enforcement actions to promote compliance and ensure that the tax system operates fairly and efficiently.

The oversight role includes monitoring taxpayers to verify that they are accurately reporting their earnings and paying the appropriate amount of taxes. Through various mechanisms, AFIP enforces tax laws, which can involve penalties for non-compliance, helping to sustain the integrity of the tax system.

While financial education and support for taxpayers are important, the primary function of AFIP is not centered around providing education or setting tax rates. Additionally, offering targeted tax breaks or incentives to businesses falls outside the core enforcement and compliance mandate of the agency. Thus, the agency's central role in tax compliance and enforcement is adequately captured by the statement that it oversees these functions.