AFIP, Argentina’s tax agency, supports the creation of a centralized system that would serve as a registry for cryptocurrency holders. According to its head, this will make it easier for tax agencies around the world to fight tax evasion. The organization has already used financial information to collect taxes from Argentine users with bank accounts abroad.
The Argentine tax agency supports the creation of a registry of cryptocurrency holders
AFIP, which is Argentina’s national tax agency, wants to improve the efficiency of tax collection related to cryptocurrencies. In this sense, the organization has expressed its public support for the creation of a registry of cryptocurrency holders, making changes to include digital assets in the existing automatic exchange data system managed by the Organization for Economic Cooperation and Development (OECD). The head of AFIP, Mercedes Marco del Pont, said at an event that:
It is necessary to include electronic money, digital currencies and crypto-assets in international information exchange mechanisms to prevent them from becoming tools to facilitate tax evasion.
In addition, Marco del Pont described the regulator’s recent experience in combating tax evasion from taxpayers who do not have bank accounts or assets in the country. The regulator has been able to take advantage of information exchanges with other countries to gain access to an important part of these funds.
AFIP Increases Controls
The Argentine Revenue Authority managed to include digital wallets, that is, funds that users stored on fintech platforms, among the assets that can be seized to pay tax debts. This measure allowed the organization to take action in more than 5,000 cases where taxpayers had no other assets to seize. This was made possible because the organization receives reports from fintech companies about their clients’ holdings.
Regarding these actions, Marco del Pont stated:
We have deepened the restoration of the state’s control capacity to combat tax evasion and avoidance, with a focus on increasing the contribution to tax collection of the sectors with the highest taxpayer potential.
The Argentine government is trying to raise funds to pay off the debt it owes to the International Monetary Fund, and one of its strategies is to introduce new methods of tax collection. In March, the organization began directly checking the movements of cryptocurrency traders, sending demands to some of them to report their cryptocurrency movements. In addition, earlier this month, a bill was introduced in the Senate aimed at taxing the holdings of Argentines around the world, including cryptocurrencies.
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