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

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The Argentine tax authority (AFIP) is increasing its scrutiny when it comes to digital wallets. The institution recently revealed it found irregularities in at least 184 tax statements that include digital wallets and cryptocurrencies. These taxpayers did not include their wallet holdings as part of their 2021 tax statements, leaving close to $7.6 million in such assets undeclared.

Argentine Tax Authority AFIP Finds Irregularities

The Argentine tax authority has ramped up its vigilance for digital and cryptocurrency taxes. Recently, the institution announced that it had discovered a series of irregularities that involved at least 184 taxpayers, who failed to refer to their digital and cryptocurrency holdings in their tax statements.

The scrutinized tax statements, corresponding to fiscal year 2021, involve a difference of close to $7.6 million in assets undeclared, which will have to be paid according to rules for existing estate taxes.

The AFIP explained this was the result of cross-referencing the data provided by taxpayers with the information available in the databases of the institution, which let it know some individuals underreported their holdings in crypto and digital wallets, while others did not report their holdings in their entirety.

How Exchanges Help

The findings of the Argentine tax authority are possible due to the information that both digital wallet providers and cryptocurrency exchanges must deliver to the institution in order to comply with national laws. Part of this information delivered includes the ID data of the owners of the accounts, their account balances, and a detailed list of movements, including the destination of the transacted funds.

While some users have moved their transactions to P2P exchanges, the common movement of funds, and the amounts moved can also bring the attention of the AFIP to them, according to national analysts. Roberto Sanchez, of PWC Argentina, told Iproup about the rise in this kind of transaction. 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.

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.

What do you think about the actions of the AFIP regarding digital wallets and cryptocurrency taxes? Tell us in the comments section below.