Argentinian Tax Agency Ramps Up Digital Wallet Seizures – Tax regulators all around the world are becoming more and more knowledgeable about the many methods that taxpayers can use to conceal their money in order to avoid paying taxes. The AFIP, an Argentine tax agency, has been active in seizing possession of the digital wallets of individuals who owe money to the institution.
In other ways, these digital wallets are not directly tied to banks because they are custodial services offered to third parties by fintech companies. When the AFIP added these to its list of assets subject to seizure in February, the basis for the seizures was established.
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The institution reportedly executed 1,269 seizures against consumers who have accounts on such platforms since last February, according to local media. Due to the precautions the Argentinean government took to protect its residents’ properties during the pandemic, the organization had gone 19 months without carrying out any debt collections prior to this.
Although there are no specific rules describing when the tax authorities can confiscate these types of assets from debtors, the seizures often start when there are no more liquid assets, such as money in a bank account or other properties, that can be taken.
Due to legal obligations, the Argentine tax agency already has the information for each and every account on these platforms. The organization can easily get access to these funds because of this.
However, the processes can only be carried out if the digital wallets are offered by national companies, which explains why so many Argentineans hold so much money outside of the country. A large portion of the more than $360 billion in undeclared assets, according to government estimates, are outside the AFIP’s reach.
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The AFIP has no restrictions on what assets it can confiscate, and considering the prominence of cryptocurrency in Argentina right now, this may include seizing cryptocurrency kept on local exchanges or in national custody services. There haven’t been any reports of this occurring yet, however.