In the so-called “crypto case of the century,” SEC v. Ripple Labs, Inc. et al. securities law litigation (SDNY 20-CV-10832), parties lock horn on the question if the Ripple Labs’ cryptocurrency, XRP is a “security” (or, should the court sidestep the question, if XRP offer and sale agreements and scheme, viewed together, an unregistered, un-exempt… Continue reading Cryptocurrencies—Are They Oranges or Securities?
OECD Statement on Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalization of the Economy, issued on October 8th, 2021, updates and finalizes a political statement by 136 OECD member countries of the Inclusive Framework (IF) to fundamentally reform international taxation. Pillar One attempts to ensure a fairer distribution of profits and taxing… Continue reading OECD Pillar Two-Global Minimum Tax and US Tax Reform
The Build Back Better Act (“BBB Act”), most recently passed by House of Representatives, contains proposed legislative changes and narrower definition of “portfolio interest exemption.” “Portfolio interest exemption” and capital gain (except FIRPTA , and capital gain on sale and exchange of US partnership interest, Code §864(c)(8)) are two main exceptions to withholding tax on… Continue reading BBB Act on “Portfolio Interest Exemption”
US tax code—complicated and convoluted even for the best legal minds—can be simplistic and straightforward sometimes; a retirement plan is either funded by already taxed funds or not taxed (i.e. pre-tax) funds. Roth IRA, according to its legislative design, is funded with already taxed funds and therefore grows and accumulates wealth tax-free—for example, in the… Continue reading Power and Potential of Roth Conversion
The extraordinary gain of crypto assets, especially virtual currencies, has brought forth the urgency and importance of US taxation. In Notice 2014-21, the IRS describes crypto assets — which it calls virtual currency — as a “digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of… Continue reading Recent Development on Crypto Taxation