Argentine Authorities Target 3,997 People in $1 Billion Crypto Tax Breach
- About 4,000 people have been instructed to update their tax affidavits to reflect their ownership of cryptocurrencies.
- Authorities have estimated unreported earnings from defaulters in excess of $1 billion.
- AFIP tracked investors via data from digital exchanges and other payment providers.
Argentine tax authority AFIP is now stepping up its fight against crypto-related tax evasion after previously raiding crypto mining companies. According to local reports, his 3,997 people who used cryptocurrencies in 2020 received instructions from tax authorities to update their property tax affidavits to reflect their ownership of crypto assets. rice field.
The action came after the AFIP found discrepancies between its registered income and the amount funded by the sale of digital currency.
Per the authorities’ standards, taxpayers who use digital currencies on Argentine platforms must declare them under personal wealth tax. Officials estimate he has over $1 billion in unreported earnings from defaulters.
Here are some of the notifications:
Income tax covers the consequences arising from the disposal of digital currency.They should be externalized with relevant affidavits and their possessions, the tax situation should be standardized and affidavits should be filed without prejudice
In particular, AFIP was able to track investors via data from Argentine digital exchanges and other payment service providers (PSPs) that offer payment accounts under recently approved legislation.
According to the rules, the platform should report the magnitude of user activity when it reaches some threshold. For individuals with gross income or expenses of at least $30,000 or virtual transactions of $200,000 or more.
However, some people interviewed by the local news agency argued that the tax authorities’ actions were controversial. Germán Nlhoul, host of his Argentinian Youtube channel Criptocontador, said AFIP is looking to tax cryptocurrency holdings on personal assets. [but] There are no laws that explicitly tax them.
An article about Argentine authorities targeting 3,997 people in a $1 billion crypto tax breach first appeared in Coin Edition.