Argentine Tax Authority AFIP Detects Irregularities in 184 Digital Wallet Tax Statements

Argentine Tax Authority AFIP Detects Irregularities in 184 Digital Wallet Tax Statements – The oversight of digital and cryptocurrency taxes by the Argentine tax authority has increased significantly. In a recent statement, the institution revealed uncovering a number of irregularities, involving 184 taxpayers who did not disclose their digital and cryptocurrency assets in their tax filings.

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Tax returns for the fiscal year 2021 have undergone intense scrutiny and have revealed that there is an undeclared asset difference of approximately $7.6 million. This amount will need to be paid according to the existing rules for estate taxes.

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According to the AFIP, the discovery was made by cross-referencing the data provided by taxpayers with information available in the institution’s databases. This process revealed that some individuals had underreported their crypto and digital wallet holdings, while others had not reported their holdings in full.

The Argentine tax authority’s ability to make these discoveries is made possible by the information that digital wallet providers and cryptocurrency exchanges are required to provide to comply with national laws. This information includes the account owners’ ID data, account balances, and a detailed list of transactions, including the destination of the funds.

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Although some users have switched to P2P exchanges to avoid detection, national analysts suggest that common patterns of fund movement and the amounts transferred can still attract the AFIP’s attention. Roberto Sanchez of PWC Argentina has noted an increase in this type of transaction to Iproup.

He stated: “Throughout the year, as a result of the increase in transactions and variations in their valuation, users who choose to operate through P2P platforms (person to person) have visibly multiplied.”

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This is not the first time that the AFIP has notified taxpayers about irregularities in their statements. The institution notified almost 4,000 citizens about discrepancies related to crypto holdings in October, giving them the opportunity to amend their statements.

Also, the government of Argentina signed an automatic tax data-sharing agreement with the U.S. in December, with the objective of pushing tax collection related to goods held in other countries, including crypto.

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