I can believe this for Moskovitz, but as for Bankman-Fried I don’t think “moving your company to the Carribbean” is a signal saying “I want to pay more taxes”.
Nevertheless it does send a certain signal to the public. The way things look is important, especially when it comes to completely legal ways to circumvent taxes—where intent plays a role.
The justification of crypto regulation requires background information that outside observers don’t have. Also, it’s impossible to judge from the outside whether or not tax savings was one of the arguments considered in addition to the regulatory situation.
Yeah, if this is basically accurate then people really need to highlight this more frequently and immediately in response, as I’ve repeatedly heard the accusation that SBF just avoids taxes by living in the Bahamas. (Granted, in this case it’s about the company rather than his income, but the point is still relevant in case anyone doesn’t realize that, which seems to be a large number of people: being fully taxed by a country you don’t live in is not the most intuitive thing)
Not a tax attorney or even an interested amateur, but my guess is that unless he renounces citizenship, he still needs to pay American personal income taxes and American capital gains taxes. America has one of the most restrictive taxation system for expats in the entire world.
However, FTX likely does not need to pay US corporate taxes for their Bahamas branch (but they probably do need to pay US corporate taxes for their FTX US branch).
my guess is that unless he renounces citizenship, he still needs to pay American personal income taxes and American capital gains taxes.
I’d be interested in knowing for sure—it would change my views a bit.
However, the taxes on the company itself, as well as the reason it moved to the Bahamas (to make profit off of what is basically a gambling platform in a way that’s illegal in the US), are still relevant.
I can believe this for Moskovitz, but as for Bankman-Fried I don’t think “moving your company to the Carribbean” is a signal saying “I want to pay more taxes”.
I thought that was more to do with being a country that allowed them to operate at all rather than tax reasons.
Nevertheless it does send a certain signal to the public. The way things look is important, especially when it comes to completely legal ways to circumvent taxes—where intent plays a role.
The justification of crypto regulation requires background information that outside observers don’t have. Also, it’s impossible to judge from the outside whether or not tax savings was one of the arguments considered in addition to the regulatory situation.
He’s an American and still has to pay American taxes.
Yeah, if this is basically accurate then people really need to highlight this more frequently and immediately in response, as I’ve repeatedly heard the accusation that SBF just avoids taxes by living in the Bahamas. (Granted, in this case it’s about the company rather than his income, but the point is still relevant in case anyone doesn’t realize that, which seems to be a large number of people: being fully taxed by a country you don’t live in is not the most intuitive thing)
Not a tax attorney or even an interested amateur, but my guess is that unless he renounces citizenship, he still needs to pay American personal income taxes and American capital gains taxes. America has one of the most restrictive taxation system for expats in the entire world.
However, FTX likely does not need to pay US corporate taxes for their Bahamas branch (but they probably do need to pay US corporate taxes for their FTX US branch).
I’d be interested in knowing for sure—it would change my views a bit.
However, the taxes on the company itself, as well as the reason it moved to the Bahamas (to make profit off of what is basically a gambling platform in a way that’s illegal in the US), are still relevant.