Chair of the Senate Finance Committee, Senator Ron Wyden, has accused Dan Morehead, founding father of Pantera Capital, of evading federal taxes by relocating to Puerto Rico.
Based on a letter despatched on September 30, the investigation examines whether or not rich People are utilizing Puerto Rico’s tax applications to chop down their US tax payments.
Wyden launched the assessment in January. He stated Morehead’s attorneys first indicated they’d work together with his employees, however then stopped responding.
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Wyden wrote, “Whereas your attorneys initially advised to my employees you have been prepared to cooperate with this inquiry, they’ve all however disappeared”.
He added that he’s involved Morehead could have averted greater than $100 million in federal taxes on capital features that have been earned whereas he was nonetheless dwelling in San Francisco.
The senator’s letter indicated that Morehead would possibly relocate to Puerto Rico simply earlier than making tons of of hundreds of thousands of {dollars} from promoting a part of his stake in Pantera. Based on Wyden, Morehead then claimed that the cash was freed from US taxes because of his new residency.
Wyden argued that the regulation requires new Puerto Rican residents to proceed paying US taxes on features for ten years after transferring. He stated:
These are severe allegations of potential abuse of Puerto Rico tax incentives to keep away from the cost of US taxes that you have to instantly deal with.
On October 1, the Senate Finance Committee held a listening to on cryptocurrency taxation. What was the listening to about? Learn the total story.
