- The Argentine Tax Authority is speeding up its battle against crypto-related tax evasion and notified 3,997 taxpayers to amend their crypto tax statements.
- The authority sent notifications that were going to be linked to the statements filed during 2020 and would be sent to taxpayers.
- Notifications explain that the taxpayer has been operating with crypto in these exchanges, and the results derived from their sale are covered by the Income Tax.
In accordance with the latest revelations, the Argentine Tax Authority (AFIP) is pacing up its battle against crypto-related tax evasion. The organization brought it to notice on October 28 that it had sent notifications to 3,997 taxpayers regarding the discrepancies between their tax statements and reports on their crypto holdings.
The Argentine Tax Authority (AFIP) is utilizing the reports obtained from the local exchanges in order to cross the data in the tax statements and the crypto holdings of several taxpayers and has managed to find discrepancies already. These notifications are linked to the statements that were filed during 2020 and would be sent to taxpayers that operated utilizing the local crypto exchanges.
It should be noted that the notifications carry the explanation that the taxpayer has been operating with cryptocurrency in these exchanges. However, it continued to declare that the user is reminded that the results obtained from the disposal of the digital currencies are covered by the Income Tax, and, if applicable, the user must proceed to exemplify them in the relevant affidavits as well as their possession.
There is certainly no denying that these actions can pave the way for a possible seizure of BTC, which is still a matter of conflict, as per the analysts. An Argentine attorney, Daniel Perez, believes that there are still no laws in place that gives the state the allowance to take control of these crypto wallets.
In addition to this, it should be noted that the applicability of this new article will be restricted as it would only apply to crypto held in non-custodial wallet providers and exchanges. However, it is still not certain ways in which the state would bring citizens to deliver their private crypto keys to officials.