The Argentine Tax Agency (AFIP) has stepped up its confiscation of digital wallets from taxpayers in the country. The agency managed to seize the digital wallets of more than 1,200 taxpayers with debts and unbanked accounts, or other property available for court seizures. While the group has yet to order crypto-related seizures, this may become possible in the future.
Argentina’s Tax Agency Seizes Over 1,200 Digital Wallets
Tax regulators around the world are increasingly aware of the different ways taxpayers hide their funds to avoid tax. Argentina’s tax agency AFIP has been busy taking control of the agency’s debtors’ digital wallets. These digital wallets are custodial services provided by fintech companies to third parties and are in some ways not directly related to banks.The seizure is based on established In February, AFIP added these assets to its list of seizeable assets.
According to local media reports, since February last year, the agency has manage 1,269 seizures were executed against customers with accounts on such platforms. Before that, the group had not enforced any debt collections for 19 months due to measures taken by the Argentine government to protect the property of its citizens during the Covid-19 pandemic.
While there are no specific procedures for when tax authorities can seize such assets from debtors, seizures typically occur when there are no more liquid assets to seize, such as funds in bank accounts or other property. Argentine tax authorities already have data on every account on these platforms due to legal requirements. This makes it easy for organizations to access these funds.
However, these procedures can only be carried out if the digital wallet is provided by a national company, which is why citizens of that country hold so much money outside Argentina. According to official estimates, more than $360 billion is undeclared, with a significant portion of this funding outside the scope of AFIP.
There is no limit to the assets that can be seized by AFIP, and this includes the possibility of seeing cryptocurrencies held on Argentine exchanges or state custody services also seized, as cryptocurrencies currently have a good reputation in the country. However, there have been no reports of this happening yet.
What do you think of the actions of the Argentine tax authorities with regard to digital wallets? Let us know in the comments section below.
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