Bitcoin Jesus arrested in Spain, or how not to expatriate

Pekelo

Pekelo

You have to pay the piper, I mean the IRS. It is called the exit tax...Long story short, he forgot to pay 48M to the IRS.

https://www.justice.gov/opa/pr/early-bitcoin-investor-charged-tax-fraud

"On Feb. 4, 2014, Ver allegedly obtained citizenship in St. Kitts and Nevis and shortly thereafter renounced his U.S. citizenship in a process known as expatriation. As a result of his expatriation, Ver allegedly was required under U.S. law to file tax returns that reported capital gains from the constructive sale of his world-wide assets, including the bitcoins, and to report the fair market value of his assets. He was also allegedly required to pay a tax – referred to as an “exit tax” – on those capital gains. By Feb. 4, 2014, Ver and his companies allegedly owned approximately 131,000 bitcoins that traded on several large exchanges for around $871 each. MemoryDealers and Agilestar allegedly held approximately 73,000 of those bitcoins."


Anybody wants to multiply 131K by 60K? I can't figure out the zeros... Let's say he still has 50K BTCs left, you would think paying a measly 48M on 3 billion value is better than being in prison for a few years.
 
Pekelo said:
You have to pay the piper, I mean the IRS. It is called the exit tax...Long story short, he forgot to pay 48M to the IRS.

https://www.justice.gov/opa/pr/early-bitcoin-investor-charged-tax-fraud

"On Feb. 4, 2014, Ver allegedly obtained citizenship in St. Kitts and Nevis and shortly thereafter renounced his U.S. citizenship in a process known as expatriation. As a result of his expatriation, Ver allegedly was required under U.S. law to file tax returns that reported capital gains from the constructive sale of his world-wide assets, including the bitcoins, and to report the fair market value of his assets. He was also allegedly required to pay a tax – referred to as an “exit tax” – on those capital gains. By Feb. 4, 2014, Ver and his companies allegedly owned approximately 131,000 bitcoins that traded on several large exchanges for around $871 each. MemoryDealers and Agilestar allegedly held approximately 73,000 of those bitcoins."


Anybody wants to multiply 131K by 60K? I can't figure out the zeros... Let's say he still has 50K BTCs left, you would think paying a measly 48M on 3 billion value is better than being in prison for a few years.
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How much of the 131k did he sell??

I think the 2nd biggest holder of bitcoin are those twins which I believe is 70,000
 
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"Roger Ver renounced his US citizenship in early 2014. He lied about his bitcoin holdings in early 2014.
The price of bitcoin did not fall below $400 until late 2014 and it did not fall below $300 until 2015.

He then committed tax fraud again in November 2017 when he sold tens of thousands of bitcoins owned by his two US corporations for approximately $240 million in cash. He was legally required to report to the IRS and pay tax on certain distributions such as dividends from his two US corporations. He concealed from his accountant that he had received and sold the bitcoins owned by his two US corporations. As a result, his 2017 individual income tax return did not report any gain or pay any tax related to the distribution of his two corporations' bitcoins to him."

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"Roger told his lawyer that bitcoin wallets “were not registered to any name or associated with a tax id, and that no one, including the IRS, can freeze ones bitcoin accounts or seize ones bitcoins.”"

IRS: But we can detain and freeze YOU!
Al Capone: Yes, they can.
 
schizo said:
So you need to pay taxes when you expat, even if you didn't sell? Wow, who woulda thunk?
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Of course it makes sense. Otherwise any US citizen who made a windfall profit, could avoid all taxes by becoming an expat, selling the asset, then reapplying for US citizenship.

The best way to avoid the taxes is to borrow money for living expenses, using the asset as collateral, and never repaying the loan. You would even get a tax deduction for the loan interest. And you could even pray for a Congress that is stupid enough to eliminate all estate taxes, and your fortune would never be taxed ever.
This is scheme used by Jeff Bezos who has not paid a dime in IRS taxes for over 12 years.
 
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