Argentine Authority Targets 3997 People for $1B Crypto Tax Invasion By CoinEdition

• 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.