Dan Morehead, a prominent cryptocurrency investor and founder of Pantera Capital, has come under the radar of United States regulators over tax inquiries. He is under investigation for allegedly violating federal tax laws after relocating to Puerto Rico, which is largely recognized as a tax haven. Pantera Founder Leveraging on Puerto Rico’s Tax Haven Status Following his move to Puerto Rico five years ago, the US Senate Finance Committee (SFC) requested that the Pantera Founder provide information on over $850 million in investment profits that he earned. At the time, an ongoing investigation focused on people taking advantage of the special tax break in Puerto Rico to evade their financial obligations. Noteworthy, the said special tax break goes as far as reducing taxes of the island residents to zero. In the letter sent on January 9, Oregon Democrat Senator Ron Wyden hinted that the Pantera Capital managing partner may have treated these profits as exempt from US taxes. Unfortunately, “the majority of the gain is actually U.S. source income, reportable on U.S. tax returns, and subject to U.S. tax,” the letter said. Wealthy Individuals Attempt to Evade Tax Before now, tax regulators had caught wind of wealthy individuals’ strategies to evade tax. Investigation into some of these strategies intensified after Sen Wyden took over as chairman of the Finance Committee. For now, it is not certain what the investigation will reveal but it is worth noting that with Donald Trump’s inauguration, regulators have become less aggressive towards crypto projects. In response to the accusations against him, Morehead clarified that he moved to the Caribbean island in 2021 and not 2020, as was earlier suggested. The Pantera founder further insinuated that he had not violated any tax law. “I believe I acted appropriately with respect to my taxes,” he declared. Zero Capital Gains Tax For Crypto in the US As part of the less-stringent approach of the Trump administration towards cryptocurrencies, Eric Trump announced the introduction of zero capital gains tax for certain digital assets. Others that are not based in the US will be required to pay approximately 30% capital gain tax. This tax incentive is a way to encourage innovation in the sector. Senator Ted Cruz is also working on a Congressional Review Act resolution that would overturn an existing IRS rule on crypto tax . The IRS rule requires Decentralized Finance (DeFI) brokers to provide user data, including their names and addresses, and report gross proceeds. The post Pantera Capital Founder Under Investigation For Tax Violation appeared first on TheCoinrise.com .
