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Roger Ver Faces $49.9 Million Tax Settlement After Renouncing U.S. Citizenship
Roger Ver, known as "Bitcoin Jesus" for his early advocacy of Bitcoin, has entered into a deferred prosecution agreement with the U.S. Department of Justice. This agreement, announced earlier this month, will see charges of fraud and tax evasion against him dismissed in exchange for a payment of up to $49.9 million in fines.
In 2014, Ver renounced his U.S. citizenship and acquired citizenship in Saint Kitts and Nevis to escape high tax burdens. At that time, he held at least 131,000 Bitcoins, valued at over $70 million. However, U.S. tax laws impose an "exit tax" on expatriates, requiring them to treat their global assets as if sold prior to renunciation, which led to complications in his tax reporting.
Despite reporting and paying $1.03 million in taxes, Ver failed to disclose his Bitcoin holdings and significantly undervalued his company's assets. The Internal Revenue Service later confirmed that he had committed tax evasion, which is not subject to the statute of limitations, resulting in the substantial financial penalty he now faces.
Source: KLEA News