Argentine tax agency, AFIP has accelerated the seizure of digital wallets of taxpayers in the country. The institution managed to seize more than 1,200 digital wallets of taxpayers who had debt and did not have bank accounts, or other assets available to be collected by the courts. While the organization has yet to order crypto-related seizures, it may be possible in the future.
Argentine tax agency seizes over 1,200 digital wallets
Tax regulators around the world are becoming more and more aware of the various ways in which taxpayers can hide their money to avoid paying taxes. Argentina’s tax agency, AFIP, is busy taking the debtors’ digital wallets under the control of the institution. These digital wallets are custodial services provided by fintech companies to third parties, which in some ways are not directly related to banks. The grounds for the seizure were established in February when AFIP included these in the list of confiscations.
According to local media, since last February, the institution has managed to execute 1,269 seizures against customers who had accounts on such platforms. Previously, the organization had 19 months without executing any debt collection due to the measures the Argentine government took to protect the assets of its citizens during the COVID-19 pandemic cycle.
confiscation process
While there is no concrete procedure that specifies when tax authorities can confiscate such assets from debtors, forfeiture usually occurs when there are no more liquid assets that can be confiscated, such as that money or other assets in a bank account. Due to legal requirements Argentina’s tax agency already has data for each account on these platforms. This makes it easier for the organization to access these funds.
However, the procedures can be executed only if the digital wallets are provided by national companies, which is why so much money is held outside the borders of Argentina by the citizens of the nation. According to official estimates, with more than $360 billion undisclosed, a significant portion of these funds are beyond the reach of AFIP.
There is no limit at which assets can be confiscated by AFIP, and this includes the possibility of seeing cryptocurrency held on Argentine exchanges or even national custody services being confiscated, given that crypto is currently Enjoying the country. However, there is no news of this happening so far.
What do you think about the actions of the Argentine tax agency regarding digital wallets? Tell us in the comments section below.
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