Argentinian Tax Authority Will Now Confiscate Digital Wallets to Collect Tax Debts

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Key Takeaways: 

  • AFIP will now seize funds in digital wallets, besides banks, for tax collection. 
  • The tax regulator is helping the debtors to adjust their sheets. 

The Federal Administration of the Public Revenues of Argentina (AFIP) will start seizing tax debtor funds stored in digital wallets. This decision has been taken to collect unpaid taxes of 24,000 million pesos (worth USD 226.5 million), and the regulator has managed to identify 9,800 negligent taxpayers across the country. 

To date, the AFIP has mostly seized funds deposited in banks, credits, movable and immovable property for tax collection. But it has adopted seizing digital wallets to collect the enormous debt successfully. It has also acquired the authority to request account information of the debtors from banks and digital platforms. 

Official sources have stated, “The development of electronic means of payment and its widespread use explains the agency’s decision to include digital accounts in the list of assets that can be seized to collect debts.” 

The tax regulator started working on its plan on 22nd July 2021 but avoided a ban on tax debt collections as it would have caused trouble to the debtors and would be considered unjust. However, the government is taking the help of the AFIP to optimise its tax control measures to prevent tax evasion and expand in collections by treating digital wallets similar to bank accounts. 

The AFIP is also helping the debtors by providing tools to balance their sheets. However, the seizing of funds has again started as the government is committed to expanding collections. 

Shreya Bhattacharya
Shreya Bhattacharya

A journalist & writer exploring new topics every day!

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