Federal Revenue Service Tracks Down Taxpayers Who Evaded Cryptocurrency Taxes in Argentina

Argentina’s Federal Tax Agency, AFIP, has detected at least 184 cryptocurrency investors who evaded taxes in the 2021 return, omitted data or provided inaccurate information.

As in Brazil and the US, cryptocurrency investors in Argentina must declare their cryptocurrency holdings to the state. So in case of profit, they have to pay taxes on their activities.

With the new public statement, Argentina’s tax authorities stated that more than $1 million had not been declared by taxpayers.

See what Argentina’s earnings said about cryptocurrency investor tax evasion

The amount that cryptocurrency investors owe for Argentina’s earnings is $1,523,241,357.00. The amount was not paid by 184 taxpayers, who either withheld their earnings or declared values ​​lower than the real ones.

In an AFIP public note, the investigation found inconsistencies in the 2021 statements issued in 2022.

“The Federal Administration of Public Income (AFIP) discovered 184 taxpayers with balances in their virtual wallets that were not included in personal asset returns corresponding to fiscal year 2021.”

The leader of the Argentine public body, Carlos Castagneto, discovered the problems and should call investors. Their wallets contained undeclared cryptocurrencies and foreign currencies, as well as Argentine peso holdings.

Problem detection occurred during data crossing

All the problems found by the tax authorities of Argentina occurred after the optimization of the tax audits. Thus, it became possible to examine the growth of transactions with cryptocurrencies by investors in the country.

There was also attention from the Personal Assets Tax Certificate Office, which attempted to verify correct information on cryptocurrencies and other assets.

With the new research and the intersection of data with available information by AFIP, 184 people came to light about their situation of tax irregularity and will have to solve the problem.

Income tax in Brazil for 2022 started

Like the Argentine tax authorities, the Brazilian tax authorities also tightened their inspection of the cryptocurrency market in 2023, for the base year 2022. For example, pre-completed returns will already provide information from investors in brokerages that were active during the period.

Since 2019, the RFB has been asking Brazilians trading cryptocurrencies to hand over their information and pay taxes on corporate profits. Those who incur losses also declare their transactions, but do not have to pay tax.

The Argentine revenue case, which has come to light in recent days, draws attention to governments’ fiscal focus on the cryptocurrency market. For example, cryptocurrency brokers in Brazil are already automatically sending customer information.

Source: Live Coins