๐จ The tax-avoidance scheme of โBitcoin Jesusโ Roger Ver backfires ten years later: he reported paying $1.03 million in taxes, but now faces up to $49.9 million moreโ48 times the original amount!
๐ The backstory (according to Reuters, cited by BlockBeats):
โข In 2011, he bought a large amount of
$BTC for less than $3 million
โข In February 2014, he became a citizen of Saint Kitts and Nevis, and renounced his U.S. citizenship the following month
โข At the time, he and his companies held at least 131,000 BTC, worth over $70 million
โข The U.S. โexit taxโ treats all assets as if they were sold the day before expatriation, with capital gains taxed accordingly
โข He failed to report the BTC he held personally and undervalued his companiesโ assets; the statute of limitations does not apply to tax evasion involving fraud
โข Earlier this month, he reached a deferred prosecution agreement with the U.S. Department of Justice. The charges were dropped in exchange for a penalty of up to $49.9 million
๐ง My take:
1๏ธโฃ On-chain records are permanent. Every transaction underreported today could come to light ten years later
2๏ธโฃ Changing citizenship โ avoiding taxes. The U.S. can pursue citizens and former citizens for a very long time
3๏ธโฃ No matter how high the cost of compliance, itโs still far cheaper than back taxes plus penalties
Current market: Fear & Greed Index 53 (Neutral).
How many other early whales do you think are sitting on similar tax time bombs? Letโs talk in the comments ๐
#ๆฏ็นๅธ #ๅ ๅฏ็จๅก #RogerVer $BTC For personal opinions only; not investment advice