Argentinian tax authority AFIP notified 4,000 crypto holders to commend their tax returns

The Argentine Tax Authority (AFIP) is intensifying its fight against crypto-related tax evasion. On October 28, the organization announced that it had sent notices to 3,997 taxpayers about a discrepancy between their tax returns and their crypto holdings. These reports are being reviewed in accordance with reports of activity taking place in 2020.

Argentinian Tax Authority AFIP Increases Vigilance Against Cryptocurrencies

The Argentinian Tax Authority (AFIP) is using reports coming from local exchanges to gather data in the tax reports and crypto holdings of some taxpayers and has discovered unreasonable point. According to reports, the organization has sent notices of these issues to 3,997 Argentine citizens, who will have the opportunity to revise their statements to include their crypto holdings and payment of taxes. additional.

These notices will be linked to statements filed in 2020 and will be sent to taxpayers already operating using local cryptocurrency exchanges, by law, notices This information must be passed on to AFIP. The notices explain that taxpayers are already operating with cryptocurrencies in these exchanges. It goes on to state:

You are reminded that the results obtained from the handling of digital currencies are covered by Income Tax and, if so, you must proceed to show them on the relevant returns as well as the ownership of the cryptocurrencies. they.

Can Cryptocurrencies Be Seized to Pay Taxes in Argentina?

However, requesting information and explanations about the costs and purchases of crypto to taxpayers in 2020 may cause them to display their crypto holdings since purchase. until that year. This may also stem from having to revise reports on cryptocurrencies of the years prior to 2020.

These actions could lead to the possibility of bitcoin being confiscated, which is still a controversial issue according to analysts. Daniel Perez, an Argentinian lawyer, believes that there is still no law that allows the state to control these crypto wallets. Conversely, digital accounts can be seized, with the organization having seized more than 1,200 of these accounts since February. In an interview with Iproup, he said:

The law will have to be amended to clearly regulate the possibility of seizing e-wallets. AFIP knows this, and that is why it is trying to sneak into the Budget an article that allows them to do so both in fiat and bitcoin.

The applicability of this new article will also be limited as it will only apply to cryptocurrencies held in non-mainstream wallet providers and exchanges. It remains uncertain how the state will force citizens to hand over their crypto private keys to government officials.

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