The Argentine tax agency (AFIP) is stepping up its surveillance on digital wallets. The agency recently revealed irregularities in at least 184 tax returns involving digital wallets and cryptocurrencies. These taxpayers did not list their wallet holdings as part of their 2021 tax returns, and nearly $7.6 million in such assets were undeclared.
Argentine tax authorities AFIP discovered the fraud
Argentine tax authorities have become increasingly vigilant against digital and cryptocurrency taxes. Recently, the agencyannounced that it had discovered a series of irregularities involving at least 184 taxpayers whofailed to mention their digital and cryptocurrency holdings on their tax returns.
The tax statements corresponding to the scrutinized fiscal year 2021 show a difference of nearly $7.6 million in unreported assets, which must be paid according to existing estate tax rules.
AFIP explained that after matching data provided by taxpayers with information available in the agency’s database, it found that some individuals underreport crypto and digital wallet holdings and others do not fully report their holdings.
How the exchange helps
The findings of the Argentine tax authorities indicate that it is possible for both digital wallet providers and cryptocurrency exchanges to comply with national law because of the information they must provide to the agency. Some of this delivered information includes account owner identity data, account balances, and a detailed list of transfers, including the destination of traded funds.
Some users have moved their transactions to P2P exchanges, but the movement of funds is common and the amounts moved can also be brought to the attention of the AFIP, domestic analysts Roberto Sanchez of PWC Argentina said of the increase in this type of trading. told Iproup. He states.
Throughout the year, there has been a visible increase in the number of users choosing P2P platforms (person-to-person transactions) due to the increase in transactions and the fluctuations in their valuation.
This is not the first time AFIP has notified taxpayers about irregularities in their statements. In October, the agency notified approximately 4,000 citizens about discrepancies related to crypto holdings, giving them the opportunity to correct their statements.
Also in December, the Argentine government signed an automatic tax data sharing agreement with the United States to facilitate tax collection related to goods held in other countries, including crypto.
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