The Argentinian Tax Agency (AFIP) has increased the number of seizures of digital wallets by taxpayers. The institution managed to seize more than 1,200 digital wallets of taxpayers that had debts and didn’t have a bank account, or other properties available to be collected by the courts. The organization is yet to make crypto-related seizures but this may change in the future.
Argentinian Tax Agency Seizes More Than 1,200 Digital Wallets
Around the globe, tax authorities are more alert to the many ways taxpayers may hide their money in order not pay taxes. The Argentinian Tax Agency, the AFIP has taken control of digital wallets belonging to debtors. The digital wallets provide custodial service to third parties by fintech firms, but are not in any way directly linked to banks. These digital wallets were included in the list by the AFIP in February, which was the basis of the seizure.
Local media reported that the institution has executed 1,269 seizures on customers who had such accounts since February. The Argentinian government’s measures to protect the property of citizens during the Covid-19 epidemic cycle meant that the institution had been able to collect debts for 19 months prior to this.
Seizure Procedures
There aren’t any specific procedures for when these assets can be taken from debtors. However, seizures are made when liquid assets are exhausted, such as bank funds or properties. Due to legal requirements, the Argentinian tax authority already holds all data for each account that is listed on these platforms. It is therefore easy to get these funds.
The procedures cannot be performed unless the digital wallets have been provided by national businesses. This is why the majority of money held by citizens outside Argentina’s borders. Official estimates suggest that more than $360 million is not declared, and that a large portion of this money is out of reach of the AFIP.
The AFIP can seize any assets. This includes cryptocurrency that is held in Argentinian custody services or on Argentinian Exchanges. There have been no reports yet of such a thing.
How do you feel about the actions taken by the Argentinian Tax Agency regarding digital wallets Leave a comment below.
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