The Argentinian Tax Agency, (AFIP), is closely monitoring the transactions of holders and cryptocurrency traders to strengthen its oversight. Now, the institution sends emails to Argentinian citizens requesting data about alleged cryptocurrency transactions made under their name. The agency needs the citizens’ public keys and the list of transactions that occurred within a given time frame.
Argentinian Tax Agency will scrutinize crypto users
The Argentinian Tax Watchdog, AFIP, decided that cryptocurrency users will be the ones fighting tax evasion. The agency previously required exchange information, but now the burden is on certain users who have been asked to provide answers to a number of questions concerning their past with digital assets.
Users are required to provide data such as the public keys for the wallets that they currently manage and a list detailing digital asset movements. This must include the dates and details of the transactions, including the cryptocurrency involved and how much was moved. Citizens must also justify their origin and complete crypto savings.
The required info is to include transactions that go back to 2018, so the numbers could be very high, according to Germán Nlhoul from Criptocontador.
Expert Opinion Differs
Experts in the country are divided on the new move by the AFIP. Others believe that crypto users have the right to be provided this information by the institution. Juan Manuel Scarso, an expert in fintech tax explained this:
[The AFIP]Has broad power to check, with regard to all current fiscal periods and the compliance of the obligors/those responsible to the laws regulations resolutions or administrative instructions. Supervising any situation of any alleged responsable.
Others, however, differ from their opinions and believe that the Argentinian Tax Agency may be too broad in requiring certain data from citizens without stating clearly the reason for the request. Mariano Neira stated that Mariano Neira was guilty of this.
One of the most common requirements for crypto assets is an overly detailed request for information as well as a clear affectation on patrimonial intimacy.
The exchanges already have this information and must conform to the law. Some have suggested that this pivot may be caused by non-compliance of the regulations on the exchanges, causing the agency look at other sources.
Let us know your thoughts about the Argentinian Tax Agency’s investigation of cryptocurrency traders and owners. Leave a comment below.
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