Argentina: Online Travel Agency Closed amid Tax Evasion Charges

EspañolAs of Wednesday, the Federal Administration of Public Revenue (AFIP) has closed down the offices of Despegar.com, a leading online travel agency in Buenos Aires, Argentina. They allege the agency is guilty of tax evasion.

According to AFIP, after investigating the agency since 2013, the operations in Argentina were billed on behalf of another company of the same group based in the United States, thus avoiding the payment of corporate income taxes.

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Clarín newspaper said that according to a source within the company, tickets were issued in Uruguay and billed in the United States, which constitutes tax evasion, according to the Argentinean government.

AFIP compelled Despegar.com to suspend online ticket sales as a preventive measure until the situation was resolved.

Source: Clarín.