Argentine Tax Authority AFIP Notified 4,000 Crypto Holders to Ammend Their Tax Statements
The Argentine Tax Authority (AFIP) is ramping up its fight against cryptocurrency-related tax evasion. On Oct. 28, the organization informed it had sent notifications to 3,997 taxpayers about incongruencies between their tax statements and reports on their cryptocurrency holdings. These statements being reviewed correspond to reports of operations happening in 2020. Argentine Tax Authority AFIP Ramps up Crypto Vigilance
The Argentine Tax Authority (AFIP) is using the reports coming from local exchanges to cross the data in the tax statements and the crypto holdings of several taxpayers and has already found incongruencies. According to reports, the organization has already sent notifications of these problems to 3,997 Argentine citizens, that will have the opportunity to correct their statements to include their cryptocurrency holdings and pay additional taxes.
These notifications would be linked to statements that were filed during 2020 and would be sent to taxpayers that have operated using local cryptocurrency exchanges, that must pass their operational information to the AFIP by law. The notifications explain that the taxpayer has been operating with cryptocurrency in these exchanges. It continues declaring: You are reminded that the results derived from the disposal of digital currencies are covered by the Income Tax and, if applicable, you must proceed to externalize them in the relevant affidavits as well as their possession. Can Crypto Be Seized to Pay Tax Debt in Argentina?
However, asking for information and justification of the expenses and cryptocurrency purchases for taxpayers in 2020 might lead them to show the history of their cryptocurrency holdings since its purchase until that year. This might also derive from having to amend cryptocurrency statements of years before 2020.
These actions can lead to a possible seizure of bitcoin, which is still a controversial issue according to analysts. Daniel Perez, an Argentine attorney, believes that there are still no laws that allow the state to take control of these cryptocurrency wallets. In contrast, digital accounts can be seized, with the organization having seized more than 1,200 of these since Feb. In an interview with Iproup, he stated: The law would have to be modified to clearly stipulate the possibility of seizing electronic wallets. The AFIP knows this, and that is why it is trying to sneak into the Budget an article that gives it the power to do so both with respect to fiat money and bitcoin.
The applicability of this new article would be also limited because it would only apply to cryptocurrency held in noncustodial wallet providers and exchanges. It is still uncertain the ways in which the state would force citizens to deliver their cryptocurrency private keys to government officials. Tags in this story afip, ammendements, Argentina, Argentine, Crypto, Cryptocurrency, digital accounts, evasion, local exchnages, Seizure, statements, Tax
What do you think about the recent notifications sent to taxpayers by the AFIP? Tell us in the comments section below. Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Hong Kong to Start Allowing Retail Crypto Trading in March Next Year: Report REGULATION | 1 day ago US Lawmakers Probe SEC, Treasury, Federal Reserve Over Revolving Door With Crypto Industry REGULATION | 1 day ago
Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFrench Lawyer Asks Russian Patriarch to Help Save Alexander Vinnik From ‘Political Trial’ in US Next articleBank of Thailand Needs More Time to Complete and Launch Retail Digital Currency Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher