Argentine Tax Authority AFIP Notified 4,000 Crypto Holders to Ammend Their Tax Statements – Regulation Bitcoin News

The Argentine Tax Authority (AFIP) is ramping up its fight against cryptocurrency-related tax evasion. The organization informed taxpayers that it sent them notifications on Oct. 28 about possible inconsistencies between tax statements and reports regarding their cryptocurrency holdings. The statements under review correspond to 2020 operations.

Argentine Tax Authority AFIP increases Crypto Vigilance

The Argentine Tax Authority uses reports from local exchanges in order to compare the tax statements with the cryptocurrency holdings of multiple taxpayers. The organization sent out notifications about these issues to 3997 Argentine citizens. They will be able to rectify their statements and include their crypto holdings, as well as pay extra taxes.

These notifications will be connected to 2020 statements and sent to all taxpayers who have used local cryptocurrency exchanges. They must also provide operational information to AFIP. It states that the notifications indicate that taxpayers have been using cryptocurrency in these platforms. It continues declaring:

Recall that results from digital currency disposal are covered under the Income Tax. If applicable, it is necessary to extinguish them both in the appropriate affidavits and their actual possession.

Can you seize cryptocurrency to help pay your Argentina tax debts?

If taxpayers ask for documentation and justification for expenses or cryptocurrency purchases in 2020, it might prompt them to display the historical history of their crypto holdings from the year of its purchase up until the present. You might have to update cryptocurrency statements for years preceding 2020.

This could result in bitcoin being taken away, which analysts consider a controversial topic. Daniel Perez from Argentina is an attorney who claims that the laws do not allow for state control over these digital wallets. Digital accounts, however, can be confiscated. The organization has seized over 1,200 digital accounts since February. He stated this in an interview with Iproup:

It would need to be amended to make it clear that electronic wallets can be taken. The AFIP understands this and is trying to hide in the Budget an article which gives it the authority to take electronic wallets.

It would not apply to cryptocurrency that is held outside of noncustodial wallet providers. There are still questions about the methods by which citizens would be forced to hand over their crypto private keys to the government.

This story contains tags
afip, ammendements, Argentina, Argentine, Crypto, Cryptocurrency, digital accounts, evasion, local exchnages, Seizure, statements, Tax

How do you feel about recent notices sent out by the AFIP tax payers? Leave a comment below.

Sergio Goschenko

Sergio is a Venezuelan cryptocurrency journalist. Sergio is a cryptocurrency journalist based in Venezuela. He says he was late to the party, having entered the cryptosphere during the December 2017 price increase. He is a Venezuelan computer engineer with a background in social engineering and has been impacted by cryptocurrency’s boom on a personal level.

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