🎉 #Gate xStocks Trading Share# Posting Event Is Ongoing!
📝 Share your trading experience on Gate Square to unlock $1,000 rewards!
🎁 5 top Square creators * $100 Futures Voucher
🎉 Share your post on X – Top 10 posts by views * extra $50
How to Participate:
1️⃣ Follow Gate_Square
2️⃣ Make an original post (at least 20 words) with #Gate xStocks Trading Share#
3️⃣ If you share on Twitter, submit post link here: https://www.gate.com/questionnaire/6854
Note: You may submit the form multiple times. More posts, higher chances to win!
📅 End at: July 9, 16:00 UTC
Show off your trading on Gate Squ
IRS Investigating Cryptocurrency Traders Taking Advantage of Puerto Rico Tax Breaks
Author: TOM MITCHELHILL, COINTELEGRAPH; Compiler: Songxue, Jinse Finance
** U.S. Attorneys and Internal Revenue Service (IRS) agents are reportedly investigating cryptocurrency traders and fund managers who allegedly illegally benefited from Puerto Rico tax breaks. **
Investigators are currently filing civil and criminal cases against some hedge fund managers, cryptocurrency traders and other wealthy Americans who may have residency and Lies about key elements of income in order to unfairly claim tax deductions. **
U.S. officials are also digging into lawyers and accountants charged with promoting the island nation's tax scheme, and at least two criminal investigations are expected to lead to charges in the near future. Prosecutors are reportedly investigating conspiracy and wire fraud charges.
Attorney Carlos Ortiz recalled a conversation with U.S. prosecutors who said they were working with "Internal Revenue Service agents" as well as Puerto Rican officials.
** "The message is that the noose is tightening."**
Since Puerto Rico introduced a new tax policy in 2012, more than 5,000 Americans have moved to the country, one of the benefits of doing so is federal income tax savings.
**Puerto Rico's tax policy grants individuals a 100% exemption on dividends, a 60% exemption on municipal taxes, and no federal tax on source income earned in the region. **
**In addition, more than 3,600 companies are exempt from dividend tax on earnings and profits, and only need to pay a 4% export tax. **
While the tax incentives here are among the most permissive in the world, the requirements to take advantage of these absolute benefits are quite stringent. **
To qualify for the tax deduction, new residents must be able to demonstrate that they** reside on the island for at least 183 days per year and that the island territory is their "tax home". **
According to lawyers familiar with the system, the government's strict rules have reportedly enticed many people to fudge numbers and cheat on their tax returns. **
Notable residents who relocated to Puerto Rico for tax reasons include gold buff Peter Schiff and cryptocurrency investor Michael Terpin. On July 4, Puerto Rico regulators shut down Schiff's bank for failing to meet minimum net capital requirements.
Speaking at the annual Bitcoin conference in Miami on May 19, Turpin praised Puerto Rico as “the only place you can go and not have to pay global taxes without giving up your U.S. citizenship.”
Unlike some, Turpin doesn't seem too worried about strict tax policies:
"I've been told that everyone is going to be audited, which is fine. My records are very precise. I put them through a tax lawyer and a CPA, and two bookkeepers. So come on, I'm not afraid of an audit.
**While wealthy residents of the island applaud the tax break as it attracts top fund managers and entrepreneurs to the island, the tax plan has been met with protests that claim new super-wealthy residents are low taxed "Colonists", pushing up the cost of living. **