Cryptocurrency traders and holders are being closely monitored by the Argentine Tax Agency (AFIP) in order to better oversee their transactions. For the first time, the organisation has begun sending emails to the Argentinian population inquiring about alleged bitcoin transactions. Citizen public keys and transaction records are required by the government agency.
Investigation of Cryptocurrency Users by Argentina’s Tax Agency
The Argentinian tax agency, the AFIP, has chosen to go after cryptocurrency users directly in the fight against tax avoidance. As opposed to prior requests from the agency, this time users are expected to answer a series of questions about their experience with digital assets in order to be held accountable.
Requirements include providing the public keys of the wallets they are currently maintaining, and a summary of digital asset transactions that includes dates, the currencies involved, the amounts moved and type of activity.. Citizens must also explain the origin of the monies used to conduct these transactions and the total crypto savings they have.
According to Germán Nlhoul from Criptocontador, the requested information includes transactions dating back to 2018.
Opinions Among Experts Differ
Experts in the country are split over the AFIP’s latest action. A number of crypto users believe they should be required by the institution to provide this information. Juan Manuel Scarso, a financial technology tax expert, explains:
When it comes to verifying whether or not obligors or those responsible are abiding by laws, regulations, resolutions, and administrative instructions, [AFIP] has broad authority to do so at any time and even with regard to current fiscal quarters.
The Argentinian Tax Agency, on the other hand, may be overreaching by requiring part of this data from the individuals without clearly articulating the aim of these requirements. Mariano Neira, for example, said the following:
It’s possible to detect an overzealous demand for data on crypto assets, as well as an overt attempt to establish patrimonial closeness.
The exchanges are already required by law to provide this information to the organisation. It is possible that the agency has been forced to hunt for information from other sources due to the exchanges’ non-compliance with the legislation.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.