• New law allows Argentine tax authorities to confiscate digital assets
• Digital accounts of 9,800 people to be confiscated
• Cryptocurrencies can only be confiscated if located in Argentina
New law gives Argentine tax authorities more options
For Argentinian tax evaders who use cryptocurrencies like Bitcoin, Mooncoin or Ethereum, things could get uncomfortable in the future. A new law allows the Argentine tax authority AFIP to confiscate crypto wallets from taxpayers in order to settle tax debts. This is reported by Bitcoin.com, citing local news site infobae. The law was recommended to prosecutors back in November 2021. Due to the corona pandemic, the implementation was postponed to the end of January this year.
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Digital accounts of 9,800 taxpayers are to be confiscated
The new law also applies to the confiscation of other investment funds such as bank accounts, wage payments to third parties, houses or cars. As reported by Bitcoin.com, citing an official source in local media, the reason for including digital accounts in the list of assets that can be confiscated to settle tax debts was the development and widespread use of electronic payment methods. AFIP obtains its data through various regulatory measures that force financial institutions to release information about their customers when required by law. According to Crypto Exploit, the tax authority has announced that it will confiscate digital accounts from 9,800 taxpayers.
Digital wallets are not the primary goal
According to information from Bitcoin.com, the new procedure allows the tax authority to confiscate funds from more than 30 digital wallets that handle the national fiat money, such as Bimo and Ualá. The main target for AFIP is Mercado Pago, the digital wallet of Mercadolibre, a bitcoin-friendly retail company that allows debtors to funnel their savings past tax authorities.
According to Bitcoin.com, digital wallets should not be the first target when it comes to collecting tax debts. The Argentine tax authority wants to confiscate those alternatives that have greater solvency first. Only if these funds are not available will the authority turn to other assets. As reported by Bitcoin.com, Sebastián Domínguez of SDC Tax Advisors told local media that cryptocurrencies could be confiscated if custody of the assets is tied to an Argentine-based entity. The fact that digital assets are the target is new. According to Domínguez, this does not mean that other assets cannot also be the subject of possible embargoes.
M. Wieser / Editor finanzen.net
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