The Argentine tax authority (AFIP) is increasing its scrutiny when it comes to digital wallets. The institution recently revealed that it found irregularities in at least 184 tax returns that include digital and cryptocurrency wallets. These taxpayers did not include their wallet holdings as part of their 2021 tax returns, leaving about $7.6 million in such assets unreported.
Argentine Tax Authority AFIP finds irregularities
The Argentine tax authority has intensified its surveillance of digital and cryptocurrency taxes. Recently, the institution Announced that it had uncovered a series of irregularities involving at least 184 taxpayers, who failed to reference their digital and cryptocurrency holdings on their tax returns.
The scrutinized tax returns, corresponding to fiscal year 2021, imply a difference of close to $7.6 million in undeclared assets, which must be paid in accordance with the current property tax rules.
The AFIP explained that this was the result of crossing the data provided by taxpayers with the information available in the institution’s databases, which revealed that some people underreported their holdings in cryptocurrencies and digital wallets, while others did not report. their holdings in full.
How exchanges help
The findings of the Argentine tax authority are possible due to the information that both digital wallet providers and cryptocurrency exchange houses must provide the institution to comply with national laws. Some of this information provided includes the identification data of the account holders, their account balances and a detailed list of movements, including the destination of the funds transferred.
Although some users have transferred their transactions to P2P exchanges, the common movement of funds and the amounts moved may also draw the attention of the AFIP, according to national analysts. Roberto Sánchez, from PWC Argentina, told Iproup about the boom in this type of transaction. He stated:
Throughout the year, as a result of the increase in transactions and the variations in their valuation, users who choose to operate through P2P (person to person) platforms have visibly multiplied.
It is not the first time that the AFIP notifies taxpayers about irregularities in their returns. The institution notified nearly 4,000 citizens of discrepancies related to cryptocurrency holdings in October, giving them the opportunity to amend their statements.
In addition, the government of Argentina signed an automatic tax data sharing agreement with the US in December, with the aim of boosting the collection of taxes related to goods in other countries, including crypto.
What do you think of the AFIP’s actions regarding digital wallets and taxes on cryptocurrencies? Tell us in the comment section below.
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