US senator Ron Wyden, the leading Democrat on the Senate Financial Committee, continues his questioning whether Dan Morehead, the founder of the asset manager Pantera Capital, seeks to avoid paying taxes by his transfer to Puerto Rico.
Wyden’s investigation of whether Morehead’s taxes began in January, and focused on how the founder of Pantera reported taxes on his part of the proceeds after a huge firm crypto sale. According to A press releaseWyden specifically looks at Morehead “Misreadpresent (ED) his residence status” when Pantera formed more than $ 1 billion in capital revenues from crypto sales by claiming his income from sale came while he was in Puerto Rico. Residents of US territory do not pay income tax on capital revenues.
“This is my understanding of your part of these gains … is a hundred -millions of dollars,” Wyden said to The lettersent on Wednesday. “It is also my understanding that you are treating the whole (benefit) as exempt from the US tax, even though the lion’s part of these gains has been accumulated while you are still living in California. These are serious allegations of potential abuse of Puerto Rico tax incentives to avoid paying US taxes you should meet immediately.”
Wyden’s letter said Morehead’s lawyers were “lost but lost” despite the first to contact his staff. He also said in the letter that he believed that Morehead was advised by Jeffrey Rubinger, a Miami -based lawyer who advised another client who “recently promised a tax fraud” who was tied to both Puerto Rico tax policies.
A Pantera spokesman was referred to Coindesk in a previous statement from Morehead, when he said at New York Times In a statement earlier this year, “I believe I act appropriately about my taxes.”
Wyden’s investigation does not carry the full weight of an investigation by the Senate Finance Committee today, that Democrats have given the party minority to the Senate and Committee Chair Mike Crapo – the leading Republican on the committee – does not appear to join in question at this time.
Wyden’s letter came on the same day that the Senate Finance Committee held a hearing on crypto tax issues. Witnesses warned at the hearing that the IRS could immediately face a tax reporting flood.
Read more: US Senate hearing on crypto taxes shows headaches for both industry and IRS
