As a follow-up to recent raids on cryptocurrency mining operations, the Argentine tax authority AFIP is now ramping up its efforts to combat tax evasion connected to cryptocurrencies.
According to a local article, the tax administration instructed 3,997 people who used cryptocurrency in 2020 to alter their property tax affidavits to represent their possession of crypto assets. This move was made when the AFIP discovered discrepancies between reported earnings and the proceeds from selling digital currency.
Those transacting in virtual currencies on Argentine exchanges must report them in their TPA filings, per the agency’s requirements. The authorities calculated that the defaulters’ undeclared income was more significant than $1 billion.
With the use of information from Argentine digital exchanges and other PSPs offering payment accounts in accordance with a recently enacted statute, AFIP was able to identify the Bitcoin investors.
When a user’s activity level reaches certain levels, platforms must notify the appropriate authorities. Protection is provided for those who earn or spend at least $30,000 per year or engage in online financial dealings totaling $200,000 or more.
According to interviews conducted by a regional news organisation, many believe the Tax authority’s activities are questionable. The AFIP seeks to tax crypto assets in Personal Assets, according to Germán Nlhoul, presenter of the Argentine YouTube channel Criptocontador, although no regulation explicitly taxes them.