The Argentinian Tax Agency (AFIP) has expressed support for the creation of a centralized system to act as a registry for all crypto holders. In a statement released by AFIP, this would simplify the process for the tax agencies to curb evasion. The agency has already used financial info to collect tax from Argentinians holding bank accounts abroad.
Create Crypto Holder Registry: Argentinian Tax Agency recommends
The Argentinian national tax collecting agency is seeking to extend its efficiency in collecting taxes from cryptos. To achieve this, the agency has indicated it is supporting the development of a crypto holding registry for all holders of crypto assets. To achieve this, AFIP is suggesting changes to the current model used by the Organization for Economic Co-Operation and Development (OECD) for automatic data exchange.
Mercedes Marco del Pont, the head of AFIP, also highlighted a recent experience of the agency when trying to tax evasion on taxpayers with no assets or bank accounts. To reach these people and make them pay taxes, AFIP used the information exchanged with other nations across the globe to reach out to their funds.
AFIP Looks Forward to Strengthening Controls
According to the Tax Office, the agency included digital wallets, which means funds that users stored in fintech firms as assets can be seized for tax debts. Within this policy, they acted on more than 5,000 cases where taxpayers lacked other properties to seize. This was possible because the tax agency gets information from fintech firms on their customers.
The government of Argentina is working on raising funds to clear its debt with the International Monetary Fund (IMF), and one of the strategies is to introduce new tax methods. In March 2022, the tax agency started scrutinizing crypto traders, asking some to file reports on their asset movements. A law seeking to tax holdings of Argentinians no matter where they are across the globe has been introduced to parliament.