The Argentinian tax authority, AFIP supports the establishment of a centralized registry that will serve as a record for crypto-holders. Its head stated that this system would be easier to use by tax agencies around the world in order to combat evasion. Already, the organization used financial data to collect taxes on Argentinian bank account holders abroad.
Argentinian Tax Agency Supports Creation of Crypto Holder Registry
The Argentinian National Tax Collection Agency (AFIP) wants to improve its efficiency when collecting crypto-related taxes. The AFIP has expressed its support for the creation of a crypto holder registry by changing the automatic exchange data system run by the Organization for Economic Co-operation and Development to incorporate digital assets. Mercedes Marco del Pont (head of the AFIP) stated that at an event:
In order to avoid them becoming instruments of evasion, it is essential to include digital money, digital currencies, and crypto assets within international information-exchange mechanisms.
Marco del Pont explained, in addition to the previous experience of Marco del Pont when dealing with tax evasion against taxpayers without assets or bank accounts in the country. To gain an important portion of the funds, the regulator was able to use information exchanged with countries other than his own.
AFIP Strengthens Controls
The Argentinian Tax Office included digital wallets in its assets list. This means that funds stored on fintech platforms by users could now be seized to repay tax debt. In more than 5,000 cases in which taxpayers had no other property to seize, the organization could act. The organization gets reports from fintech firms about their customers’ holdings.
On these actions, Marco del Pont stated:
The State has been able to recover its capacities in control of avoidance and fraud. We have increased the contributions to tax collection for the highest-taxpaying sectors.
The Argentinian government seeks to increase funds in order pay its International Monetary Fund debt. It is also trying to find new ways to collect taxes. The organization began to monitor the cryptocurrency trades directly in March and sent requests to traders to inform them of their movements. A law proposal that would tax the wealth of Argentinians around the globe, which includes cryptocurrencies, was also presented to Congress earlier in the month.
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