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Argentinian Tax Agency Amps Up Scrutiny for Crypto Traders and Holders With New Requirements

Argentinian

The Argentinian Tax Agency (AFIP) is watching the movements of cryptocurrency traders and holders, to tighten its control over their transactions. The institution is now sending emails to Argentinian citizens asking for a series of data regarding supposed cryptocurrency operations made in their names. The agency requires the public keys of the citizen and a list of transactions made during a certain time period.

Argentinian Tax Agency to Scrutinize Crypto Users

The AFIP, the Argentinian tax watchdog, has decided to take the battle against cryptocurrency tax evasion directly to users of these currencies. While the agency had required information from exchanges before, the responsibility is now directed to certain users that have received a requirement to answer a series of questions regarding their history with digital assets.

The requirement compels users to deliver data like the public keys of the wallets they are currently managing, and a list of digital asset movements that must include dates, the cryptocurrencies involved, the amounts moved, and the kind of operation. Furthermore, the citizens must justify the origin of the funds used to perform these transactions and the complete crypto savings held.

The required info is to include transactions that go back to 2018, so the numbers could be very high, according to Germán Nlhoul from Criptocontador.

Expert Opinion Differs

The opinion of experts in the country is divided regarding this new move of the AFIP. Some think that the institution has the right to require this information from crypto users. This is the case with Juan Manuel Scarso, a fintech tax expert who explained:

[The AFIP] has broad powers to verify, at any time, including with respect to current fiscal periods, the compliance that the obligors or those responsible give to the laws, regulations, resolutions and administrative instructions, supervising the situation of any alleged responsible.

However, others differ in their views and state that the Argentinian Tax Agency might be overreaching by requiring some of this data from the citizens, without stating the purpose of these requirements clearly. This is the case with Mariano Neira, who stated:

Among the requirements on crypto assets that are circulating, an excessive request for information and also a clear affectation of patrimonial intimacy can be observed.

This information is already required by the organization from the exchanges, which must comply with this requirement by law. However, some have speculated that this pivot is due to the exchanges being non-compliant with the regulation, forcing the agency to look for the info from other sources.

What do you think about the Argentinian Tax Agency probing cryptocurrency holders and traders? Tell us in the comments section below.



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