The Argentine Tax Agency, AFIP, has stepped up seizures of digital wallets of taxpayers in the country. The agency has successfully seized more than 1,200 digital wallets of taxpayers who are in debt and have no bank accounts or other assets from which the courts can recover. The agency has not yet ordered any crypto-related seizures, but this may become possible in the future.
Argentine tax agency seizes more than 1,200 digital wallets
Tax authorities around the world are becoming increasingly aware of the different ways taxpayers can hide funds to avoid paying taxes. Argentina’s tax agency, AFIP, has been busy managing digital wallets of debtors owed to the agency. These digital wallets are custody services provided by fintech companies to third parties and, in a sense, are not directly related to banks; the basis for seizure was established in February when AFIP added them to the list of assets that can be seized.
According to local media, since last February, the agency has managedto execute 1,269 foreclosuresagainst customers with accounts on such platforms. Prior to that, the agency had not made any debt collections for 19 months due to measures taken by the Argentine government to protect the property of its citizens during the Covid-19 epidemic, according to the agency.
Seizure Procedures
There is no specific procedure that explains when tax authorities can seize this type of asset from a debtor, but usually seizures occur when there are no liquid assets that can be seized, such as funds in bank accounts or other property. proceed. The Argentine tax authorities already have data on all accounts on these platforms due to legal requirements. This makes it easy for organizations to access these funds.
However, this procedure is only feasible if the digital wallet is provided by a state-owned company, which is why Argentine citizens hold so many funds across the border. According to official estimates, more than $360 billion is undeclared, and most of these funds are beyond the reach of AFIP.
There is no limit to the assets that can be seized by the AFIP, and this includes the possibility that cryptocurrencies held in Argentine exchanges and national custody services could be seized, given that crypto is currently gaining popularity in the country. However, this has not yet been reported.
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