Argentine tax authority AFIP notified 4,000 crypto holders to amend their tax returns – Regulation Bitcoin News

The Argentine Tax Authority (AFIP) is stepping up its fight against cryptocurrency-related tax evasion. On October 28, the organization informed that it had sent notices to 3,997 taxpayers about discrepancies between their tax statements and reports on their cryptocurrency holdings. These statements being reviewed correspond to reports of operations occurring in 2020.

Argentine tax authority AFIP increases crypto-vigilance

The Argentine Tax Authority (AFIP) uses the reports from local exchanges to cross-check the data in the tax returns and crypto holdings of several taxpayers and has already found discrepancies. According to reports, the organization has already sent notices about these issues to 3,997 Argentine citizens, who will have the opportunity to correct their statements to include their cryptocurrency holdings and pay additional taxes.

These notices will be linked to statements filed during 2020 and will be sent to taxpayers who have operated using local cryptocurrency exchanges, which are required by law to submit their operational information to AFIP. The messages explain that the taxpayer has been dealing with cryptocurrency in these exchanges. It goes on to declare:

You are reminded that the results of the disposal of digital currencies are covered by income tax and, if applicable, you must continue to externalize them in the relevant declarations, as well as their possession.

Can crypto be seized to pay tax debt in Argentina?

However, requesting information and justification for the expenses and purchases of cryptocurrency for taxpayers in 2020 may result in them showing the history of their cryptocurrency holdings since the purchase of that year. This may also come from having to change cryptocurrency declarations from years before 2020.

These actions could lead to a possible seizure of bitcoin, which remains a controversial issue according to analysts. Daniel Perez, an Argentinian lawyer, 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, and the organization has seized more than 1,200 of these since February. In an interview with Iproup, he stated:

The law needs to be changed to clearly establish the possibility of confiscating electronic wallets. AFIP knows this, which 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 will also be limited because it will only apply to cryptocurrency held in non-custodial wallet providers and exchanges. It remains uncertain how the state will force citizens to hand over their private cryptocurrency keys to government officials.

What do you think of the recent notices sent to taxpayers by 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 spike occurred during December 2017. He has a computer engineering background, lives in Venezuela and is influenced by the cryptocurrency boom on a social level, offering a different point of view on crypto success and how it helps the unbanked and underserved.

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