Argentina’s Tax Authority Seizes Digital Wallets in Attempt to Collect Tax Debts

<p>The Argentine Tax Authority, AFIP, has indicated that they would be entitled to take any assets held by taxpayers in digital wallets if tax arrears are not paid. The organisation approved the law last year but delayed implementation until early 2022, during the Covid-19 pandemic.</p> <p>The organisation now has a policy in place for seizing digital assets contained in these accounts. This update will enable authorities access to not only bank accounts and loans made by third parties, but also to the homes and vehicles owned by individuals who may have been involved in cryptocurrency transactions decades ago! According to official sources cited by local media:</p> <p>The agency's decision to include digital accounts on the list of assets seized to collect debts is explained by the rise of electronic payment methods and their widespread use.</p> <p>When compelled by law, financial organisations must divulge client information. Argentina's Tax Authority has declared that it will seize the digital accounts of 9800 taxpayers.</p> <p>Cryptocurrency-Based Tax Collection</p> <p>Argentina's tax authorities are pursuing digital wallets such as Bimo and Ualá that handle the country's fiat money. The primary target of these tax agents is Mercado Pago, an e-commerce platform with bitcoin-friendly policies that allow debtors to store their savings safely away from annoying collectors seeking a portion of their earnings.</p> <p>When a person or business owes taxes, the organisation will target more than just their digital wallet. Initially, the organisation seeks out more liquid assets such as cash; it only turns to other assets such as bitcoin investments when these funds become unavailable.</p> <p>Argentina's government has a strict stance on cryptocurrency. Sebastián Domnguez of SDC Tax Advisors acknowledged in a recent interview with local media that they can seize even bitcoins if the custody of these assets is held by an organisation based in Argentina.</p> <p>He clarified;</p> <p>While the novelty indicates t