Tax evaders will no longer have a hiding place in Argentina. This is because digital wallets and bank accounts now share some similarities in that both of them can be confiscated. This is the tax situation in Argentina, as tax offenders can have their crypto wallets seized by the authorities.
The tax authority in Argentina has been given the power to seize the digital assets owned by taxpayers if they refuse to pay their taxes. This policy began last year, but its execution was suspended when the COVID-19 pandemic began. However, the implementation of these policies resumed again on the 31st of January.
Digital Wallets Also At Risk
The Argentine Tax Authority (AFIP) has been given the power to seize taxpayers’ assets in their crypto wallets. However, the taxpayer must have debts that they have not settled before the agency can do this. The agency has established a protocol that it will follow before seizing crypto accounts.
Crypto accounts were recently added to other assets that the regulatory agency could seize, such as houses, cars, and bank accounts. The author decided to add crypto accounts because of the widespread usage of electronic payment options.
Also, the authorities have taken various measures to ensure that financial institutions release the details of customers when the law requires it. With the development, about 9,800 crypto accounts will be affected.
Procedure For the Confiscation Of Assets
Presently, AFIP has the power to seize funds in over 30 crypto wallets, such as Ualà and Bimo. The agency’s target is a digital wallet called Mercado Pago, allowing tax avoidance to save their money away from the authorities.
When the agency wants to collect tax debt, the first option will seize liquid assets. Only when there are no liquid assets will the organization go for other investments.
According to a member of the SDC Tax Advisors, Sebastian Dominguez, a cryptocurrency wallet was added to the list of assets that could be seized because of its growth and intense usage.
Argentina is not the only country having issues with taxpayers. Before now, most taxpayers were fond of converting their money to digital currencies, which can be hidden from the eyes of tax authorities. This recent happenings could be bad news for crypto lovers as the government is gradually gaining access to digital wallets.
Does giving out customers’ information by these crypto firms speak good of them? This may reduce the trust that the citizens have in these financial institutions. Sooner, people would have to seek alternatives or, better still, pay their taxes.