Argentine Tax Authority AFIP Detects Irregularities in 184 Digital Wallet Tax Statements

The Argentine tax authority (AFIP) is increasing its scrutiny when it comes to digital wallets. The institution recently revealed it found irregularities in at least 184 tax statements that include digital wallets and cryptocurrencies. These taxpayers did not include their wallet holdings as part of their 2021 tax statements, leaving close to $7.6 million in such assets undeclared.

Argentine Tax Authority AFIP Finds Irregularities

The Argentine tax authority has ramped up its vigilance for digital and cryptocurrency taxes. Recently, the institution announced that it had discovered a series of irregularities that involved at least 184 taxpayers, who failed to refer to their digital and cryptocurrency holdings in their tax statements.

The scrutinized tax statements, corresponding to fiscal year 2021, involve a difference of close to $7.6 million in assets undeclared, which will have to be paid according to rules for existing estate taxes.

The AFIP explained this was the result of cross-referencing the data provided by taxpayers with the information available in the databases of the institution, which let it know some individuals underreported their holdings in crypto and digital wallets, while others did not report their holdings in their entirety.

How Exchanges Help

The findings of the Argentine tax authority are possible due to the information that both digital wallet providers and cryptocurrency exchanges must deliver to the institution in order to comply with national laws. Part of this information delivered includes the ID data of the owners of the accounts, their account balances, and a detailed list of movements, including the destination of the transacted funds.

While some users have moved their transactions to P2P exchanges, the common movement of funds, and the amounts moved can also bring the attention of the AFIP to them, according to national analysts. Roberto Sanchez, of PWC Argentina, told Iproup about the rise in this kind of transaction. He stated:

Throughout the year, as a result of the increase in transactions and variations in their valuation, users who choose to operate through P2P platforms (person to person) have visibly multiplied.

This is not the first time that the AFIP has notified taxpayers about irregularities in their statements. The institution notified almost 4,000 citizens about discrepancies related to crypto holdings in October, giving them the opportunity to amend their statements.

Also, the government of Argentina signed an automatic tax data-sharing agreement with the U.S. in December, with the objective of pushing tax collection related to goods held in other countries, including crypto.

Tags in this story

What do you think about the actions of the AFIP regarding digital wallets and cryptocurrency taxes? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

Image Credits: Shutterstock, Pixabay, Wiki Commons, DiegoCityExplorer /

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Read disclaimer

Articles You May Like

Russia has proved resilience to western sanctions, says Deripaska
AirBit Club ‘ponzi’ co-founder gets 12 years prison
South Africans’ support for Russia is rooted in misplaced nostalgia
S&P raises Hudson Yards Infrastructure Corp. bonds to AA
Bank of America chief predicts soft landing for US economy