Inaccuracies and mis-declarations have been noticed by the Argentine Tax Authority (AFIP) in the annual statements filed by Argentinian taxpayers.
According to the local Argentinian news sources, crypto exchanges as well as crypto holders have been directed by AFIP to remove the deficiencies.
Approximately, four thousand notices have been compiled to be sent by AFIP to Argentinian taxpayers. The taxpayers shall be asked by AFIP to amend their annual statements so as to reflect their crypto holdings if any.
The authority is expected to collect additional taxes, particularly from those taxpayers who hold cryptocurrencies.
The financial statements that were asked to be amended were for the fiscal year 2020-21. It has been said by AFIP that once the notices have been issued, they shall then be affixed by the taxpayers along with their amended statements.
Such information is required by AFIP in accordance with the law. The law on the subject requires crypto exchanges and crypto holders to provide the required information in their financial statements.
In the notifications, it will be mentioned which cryptocurrency exchanges and cryptocurrencies the taxpayer was operating and dealing with.
The excerpt from the AFIP’s notice suggests that the taxpayer is reminded of the gains the taxpayer has obtained from disposing of his/her digital currencies. They have been informed that the disposal of cryptocurrencies attracts income tax.
Taxpayers have been further directed to indicate their crypto holdings and gains in the relevant columns of the affidavits.
Is AFIP Entitled To Seize Crypto Assets For Settling Taxpayers’ Dues?
AFIP has officially required taxpayers to supply required information pertaining to the financial year 2020. It is expected that the provision of information would lead to supplying further information with regard to purchasing cryptocurrencies.
This might require the taxpayers to further amend their earlier financial statements prior to 2020.
However, whether AFIP can or cannot seize crypto assets is still a vague and controversial issue opined tax experts.
A local tax attorney, Daniel Perez, suggested that there is no law in the country which empowers the state to seize either crypto assets or digital wallets.
To the contrary, the state, particularly AFIP, has already taken coercive measures against crypto holders and seized approximately 1200 digital accounts.
The Law Is Ambiguous
Irrespective of law, AFIP has been seizing digital accounts which practice was initially started by AFIP in February this year.
The attorney said in an interview that the law on the subject requires massive modifications, particularly with regard to the seizure of digital wallets.
Perez said further that AFIP is aware of the absence of the law and which is why it has been bending the law to its liking.
He referred to the provision of the law namely “Budget” which gives AFIP the power to control fiat as well as Bitcoin.
