Some Argentinian holders of bitcoin and cryptocurrencies may need to revise their tax returns to accurately reflect their financial status. The AFIP is the Argentinian tax authority, and reports suggest it has found discrepancies in some IT returns, based on information gained from local cryptocurrency exchanges. The number of such letters sent is said to be close to four thousand.
Crypto regulations are still in the process of being formed and many things remain unclear when it comes to past holdings and trades. The concerned notices are related to statements filed in 2020, and deal with rules on notifying the AFIP with operational data of trades carried out on crypto exchanges.
The tax authorities seem to require information on acquisition of crypto, including purchases made before 2020, as well as buying and transfers made in the concerned year. The notified tax payers may have to share documentation related to these assets.
Reports cite lawyers as saying that the current Argentinian law does not give power to seize crypto wallets and cryptocurrencies. However, digital accounts can be frozen and has been done in the past.
According to the Lawreviews website, Argentina has not made any concrete laws on use and custody of virtual currencies. Argentina adopted cryptocurrencies quite early, and a good reason was to shield itself against inflation and to allow cross-border payments. It has not however accepted crypto as legal tender, but made regulations on various aspects such as tax, anti-money laundering, foreign exchange, etc.
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