The highest Democrat on the U.S. Senate Committee on Finance reportedly despatched a letter informing Pantera Capital founder Dan Morehead that the crypto investor is dealing with a tax probe.
The New York Occasions reports that in a letter, Senator Ron Wyden (D-OR) asks Morehad to provide detailed details about a big funding revenue that he made after transferring to Puerto Rico in 2020.
In response to Wyden, the Finance Committee is investigating tax compliance by Individuals who moved to Puerto Rico to make the most of the particular tax breaks that may scale back the residents’ tax to zero.
The probe focuses on individuals who could have abused the tax break to keep away from paying taxes on revenue earned exterior the territory.
Reads the letter reviewed by The New York Occasions,
“Typically, the vast majority of the acquire is definitely U.S. supply revenue, reportable on U.S. tax returns, and topic to U.S. tax.”
After Morehead moved to Puerto Rico, Pantera Capital, one of many largest funding companies centered on cryptocurrency, bought “a big place” and generated over $1 billion in capital positive factors. Wyden’s letter says Morehead “could have handled” his greater than $850 million share within the positive factors as free from US taxes.
The letter additionally asks Morehead to offer details about the transactions, together with the identify of his tax advisors, together with the checklist of cryptocurrencies and different property that he bought whereas dwelling in Puerto Rico.
The Pantera managing companion says he didn’t violate US federal tax legal guidelines.
“I consider I acted appropriately with respect to my taxes.”
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