Regulation
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The Argentine authorities estimated the unrecorded income of digital asset owners at more than $1 billion and demanded that citizens make clarifications in their tax returns.
The Revenue Service (AFIP) is stepping up the fight against cryptocurrency-related tax evasion. After conducting due diligence of companies providing services for the circulation and mining of cryptocurrencies, AFIP found a discrepancy between the registered income and the amounts received from the sale of digital currencies.
As a result, about 4,000 people received notices from the tax authority to update their tax returns. According to the tax authority’s standard, taxpayers using digital currencies on Argentinean platforms must declare them to pay personal asset tax.
AFIP was able to track crypto investors using data from Argentinean digital exchanges and payment service providers (PSPs), which were required to report to the fiscal authorities details of users whose transaction volumes reached thresholds.
Earlier, the Organization for Economic Co-operation and Development (OECD) introduced a new reporting system for cryptocurrency transactions (CARF) to combat tax evasion.
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