Arguing that cryptocurrencies could facilitate tax evasion, the AIFT requires virtual wallets to report information on their Argentine clients. The government included Bitcoin technology within the mission and scope of the Mint by reforming the organic statute of the entity.
The Government of Argentina plans to join the international mechanisms for exchanging information on cryptocurrency users, aiming to avoid tax evasion.
Mercedes Marcó del Pont, the head of the Federal Administration of Public Revenues (AFIP), released the information in Buenos Aires. She did it within the framework of the General Assembly of the Inter-American Center of Tax Administrations (CIAT).
The Argentine economist and lawmaker said the objective is to prevent cryptocurrencies from becoming instruments that facilitate (tax) evasion.
She stated that the AFIP agrees with the proposal that countries must send and share global reports on crypto assets. In turn, they support the reform of the Organization for Economic Cooperation and Development (OECD) automatic information exchange mechanism. The change incorporates cryptocurrencies and investments in crypto assets in its statute.
The official considers the recent experience of Argentina indicates that the automatic exchange of information on financial accounts is crucial. She views it as a tool to combat the evasion maneuvers by the sectors with the highest tax capacity.
The AFIP Collects Tax from Argentines Worldwide
Marcó del Point explained that the access to international mechanisms had helped the AFIP over the last two years. It has allowed them to collect over ARS 800 million in taxes evaded from the financial accounts of Argentines worldwide.
The official also stated that their information regime forces virtual wallets to report information on their clients.
According to the economist, that led to resolving over 5,000 out of 15,000 cases of defaulters who handled crypto assets. The tax collection resulted in the regularization of debts above USD 11 billion.
The lawmaker believes that Argentina has deepened the recovery of the State capacities regarding the control over avoidance and evasion. She said that the focus is on increasing the contribution to the collection by the sectors with the highest tax capacity.
The Argentine Government Moves Forward with More Policies Targeting Bitcoin
The Government of Argentina has recently reported that it would include Bitcoin technology in the mission and scope of the Mint.
To pursue that initiative, Alberto Fernández, the president of Argentina, decreed a reform in the organic statute of the entity. The need for expanding and updating the corporate purpose of the Mint brought about that change.
Cryptocurrencies are becoming increasingly prominent worldwide, which world governments do not overlook. Many regulators seek to treat those assets as fiat money by breaching user privacy. It is only a matter of time before the world accepts using Bitcoin as legal tender.
Bitcoin is trading at around USD 38,974 and has accumulated a 0.2% loss over the last 24 hours. Its trading volume is above USD 32.46 billion, and its market capitalization is about USD 741.52 billion, according to CoinGecko.
By Alexander Salazar
