The Argentinian tax agency, the AFIP, is backing the construction of a centralised system that will act as a register for bitcoin owners. According to the organization’s CEO, this will make it easier for tax authorities around the world to combat evasion. Financial data has already been used by the organisation to collect taxes from Argentinian users with bank accounts in other countries.
The creation of a cryptocurrency holder registry is supported by the Argentinian tax agency
The Argentinian national tax collection agency, the AFIP, aims to improve its efficiency in collecting crypto-related taxes. In this regard, the organisation has expressed public support for the creation of a cryptocurrency holder register by amending the Organization for Economic Co-operation and Development’s present automatic exchange data system to include digital assets (OECD). Mercedes Marco del Pont, the AFIP’s president, said at a recent event:
To prevent electronic money, digital currencies, and crypto assets from becoming instruments of evasion, they must be included in international information exchange channels.
Marco del Pont also discussed the regulator’s recent experience combating tax evasion by taxpayers who did not have bank accounts or assets in the country. The regulator was able to acquire access to a significant portion of these money by utilising information sharing with other countries.
Controls are strengthened by AFIP
The Argentinian Tax Office was able to include digital wallets, or funds saved on fintech platforms by users, as part of the assets that can be confiscated to satisfy tax obligation. This law gave the organisation the authority to act in over 5,000 situations when the taxpayers had no alternative assets to confiscate. Because the group receives reports from fintech companies regarding their clients’ holdings, this is conceivable.
Marco del Pont commented on these activities, saying:
We deepened the State’s capacity to manage avoidance and evasion, with an emphasis on raising the contribution to collection from the sectors having the most taxpaying potential.
The government of Argentina is striving to raise funds to pay off its debt to the International Monetary Fund, and one of its tactics is to deploy new tax collection systems. The group began directly investigating the movements of cryptocurrency dealers in March, sending requests to some of them to disclose their crypto transactions. In addition, the Senate was presented with a bill earlier this month that aims to tax Argentinians’ global holdings, including cryptocurrencies.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.