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While Politicians Worldwide Clamor Over Tax Evasion, Pandora Papers Show Bureaucrats Are the Worst Offenders

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While Politicians Worldwide Clamor Over Tax Evasion, Pandora Papers Show Bureaucrats Are the Worst Offenders

As bureaucrats across the globe continue to ask the common citizenry for access to every financial decision they make, politicians and celebrities worldwide are hiding large amounts of wealth in tax havens according to the Pandora Papers. While American politicians like the Biden administration claim to be against tax corruption, some people view the U.S. as the world’s “main tax lagoon.”

Pandora Papers Expose Hypocrisy Among Bureaucrats Worldwide, US Public Officials Manage to Escape Investigation

During the last month, the Biden administration and other U.S. politicians have been discussing proposed legislation that aims to address tax evasion by the so-called billionaire class and corporate entities. One proposal aims to give the U.S. Internal Revenue Service (IRS) access to bank account information, regardless of tax liability. If enacted, financial institutions across the country would have to report accounts with at least $600 worth of transactions or more. Another proposal aims to introduce “unrealized capital gains” otherwise known as “anti-deferral accounting.”

While Politicians Worldwide Clamor Over Tax Evasion, Pandora Papers Show Bureaucrats Are the Worst Offenders
The Pandora Papers published by the International Consortium of Investigative Journalists (ICIJ) exposes 330+ bureaucrats from various countries, but prominent wealthy Americans and U.S. public officials are not mentioned in the investigation.

Meanwhile, this past week the latest release of the Pandora Papers has been published and the documents unveil a great number of politicians worldwide hiding wealth to stay clear of taxation. The papers were released by the International Consortium of Investigative Journalists (ICIJ) and they claim to reveal the “inner workings of a shadow economy” for the “well-connected.” The papers include two million documents from 14 different service providers, exposing over 330 politicians and public officials from various countries.

The Pandora Papers derive from over two years of reporting from 600 journalists at 150 news outlets that uncovered close to 12 million documents.

The Pandora Papers are two times the size of the offshore accounts and the number of public officials named in the Panama Papers. Offshore asset links stemmed from celebrities too, like the professional cricket player Sachin Tendulkar, model Claudia Schiffer, and the world-famous singer Shakira. Interestingly, prominent American bureaucrats managed to stay out of the investigation’s findings despite the record-setting monetary expansion the U.S. has seen in the last two years.

One Reporter Asks: ‘Why Are There No Big American Names in Pandora Papers?’ Russia’s Press Secretary Says the ‘US Is the Main Tax Lagoon for the Whole World’

A few media outlets like NPR and the Washington Post mentioned tax-evading American bureaucrats and the country’s contribution to the Pandora Papers. The Washington Post (WP) quickly said Americans leverage the same methods of tax evasion but no public official was named in the WP report. A scathing report from the Independent doesn’t mention any American politicians but the author decides to investigate why high profile U.S. citizens were not added to the list in the Pandora Papers. While prominent Americans managed to escape being targeted by ICIJ’s investigation, the country itself did not.

Researchers noted that the U.S. is well known for being a tax haven and people from abroad are hiding funds in specific areas located in the United States. Moreover, the research did find that Americans are hiding money in other countries like Central America, but no specific names were included in the research. “The records also show how a firm in Central America became a one-stop-shop for American clients, allowing them to conceal their assets while facing criminal investigations or lawsuits,” The WP author wrote about the evidence found in the Pandora Papers.

While Politicians Worldwide Clamor Over Tax Evasion, Pandora Papers Show Bureaucrats Are the Worst Offenders
While more than 330 bureaucrats worldwide were mentioned in the Pandora Papers, American politicians managed to escape the investigation. The Biden administration and many other U.S. politicians have been targeting so-called tax offenders, but Vladimir Putin’s press secretary, Dimitry Peskov, ridiculed the U.S. for hypocrisy, calling the country the world’s largest “tax lagoon.”

The Independent highlights that state governments from Nevada and South Dakota have become tax havens for foreign nationals. NPR said both states “adopted financial secrecy laws that rival those of offshore jurisdictions” While the Western media had failed to implicate any prominent American bureaucrats, Russia’s foreign ministry ridiculed the United States over the findings in the Pandora Papers. Russian president Vladimir Putin’s press secretary, Dimitry Peskov, said the papers make U.S. politicians look like hypocrites.

“What catches the eye is which country is the world’s largest lagoon. This, of course, is the U.S.,” Peskov told the press this past week. “This does not correlate at all with their declaration about the fight against corruption… We see that the U.S. is the main tax lagoon for the whole world,” the Russian president’s press secretary emphasized.

Meanwhile, U.S. politicians are attempting to create tax reform that allegedly targets corporate entities and the so-called billionaire class. However, the proposed guidelines mentioned in the “American Families Plan Tax Compliance Agenda” do not seem to target the American wealthy. Civil rights groups and privacy advocates are concerned about the concepts of “unrealized capital gains” which means citizens would have to pay for capital gains before they even sold their assets.

Additionally, IRS commissioner Charles Rettig and Janet Yellen, the Treasury secretary, want banks to report deposit and withdrawal information tied to the average American’s bank account. The mixture of the Pandora Papers and ideas like the proposed tax compliance agenda shows that the political class of so-called public servants in the U.S. have been hypocrites and have clearly been benefitting at the expense of everyone else.

It goes to show, that while politicians all around the world are complaining about the average citizen evading taxes, bureaucrats are the ones breaking their own rules or leveraging legislated loopholes they created to protect their own wealth.

What do you think about the Pandora Papers and why do you think Americans managed to stay out of this investigation? Let us know what you think about this subject in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons, International Consortium of Investigative Journalists (ICIJ),

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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PlanB Admits $98,000 November Bitcoin Price Target ‘First Miss’

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PlanB Admits $98,000 November Bitcoin Price Target ‘First Miss’

Some investors reacted angrily after PlanB admitted that his model failed to accurately predict the price of bitcoin (BTC) for November.

The popular crypto analyst aimed for a $98,000 BTC price for the end of this month. Just last week, he insisted the price target was still possible, even as markets declined.

PlanB correctly predicted BTC reaching $47,000 in August and $43,000 in September. He slightly missed the $63,000 target for October, but said the three percent “rounding error was close enough for me.”

Now the pseudonymous Dutch investor says that his $98,000 prediction for this month “will probably be a first miss,” according to a tweet posted on Nov 25. He did not give an exact reason for the failure.

“I see this miss as an outlier, a black swan, that has not occured in the data last 10 years,” he explained.

He spoke as the price of bitcoin tanked to $55,300 on Nov 23, down 20% from its record high of $69,000 reached on Nov 10. Some analysts are blaming the decline on fears of the impending Mt. Gox BTC repayments.

Bitcoin ‘stock-to-flow model still on track to $100,000’

PlanB, who claims 25 years of financial markets experience, is famed for creating the stock-to-flow (S2F) price prediction model. The model is based on the ratio of the current supply (stock) of an asset or commodity to its annual production (flow).

It can be applied to any asset with limited supply really, and the Dutch analyst did so with bitcoin in 2019. The idea is that since the bitcoin supply diminishes with every “halving” event every four years, it will create boom and bust cycles. He then uses these cycles to forecast prices.

PlanB explained that the missed November target relates only to the “floor model,” one of his three price prediction tools. Unlike the S2F, the so-called floor model relies on price and on-chain data, he says.

He insisted the stock-to-flow model had not been “affected and indeed [was] on track towards $100,000.”

Justin Stagner put the miss into perspective. “[It is] not like you just barely missed it either. I mean, its looking like you really blew this one,” he stated.

Mounting criticism

Some investors reacted angrily to PlanB’s admission of failure, blaming the crypto analyst for their financial losses.

“I used my student loans along with a short term loan using my house as collateral to go all in at $68k because you told me it would reach $98k. Now I’ll be homeless and without a degree…” complained Twitter user Brett Lethbridge.

Another lamented: “Now your stock-to-flow model is not reliable anymore. Most people incurred great losses because of your prediction.”

However, several other people replying defended PlanB, and even thanked him for his predictions. Often, they defaulted to a familiar refrain, a disclaimer of sorts, that his forecasts are “not financial advice. Do your own research.”

PlanB himself averred:

It is indeed absurd that when you publish information for free, somehow people make you responsible for their investment decisions and actions. Everybody is responsible for their own (investment) decisions and actions. Blaming others is a sign of immaturity: NGMI (not going to make it).

The Dutch analyst has faced criticism before. He’s often accused of adjusting his price predictions lower once it becomes clear that the S2F would miss its target, and be invalidated.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Bitcoin (BTC) Falls Below $56,000 After Failure to Sustain Rebound Rally

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Bitcoin (BTC) Falls Below $56,000 After Failure to Sustain Rebound Rally

After initiating a bounce on Nov 25, Bitcoin (BTC) decreased considerably the next day and is back at its weekly lows.

Since Nov 19, BTC had been hovering above the $56,500 support. This is both a horizontal support area and the 0.382 Fib retracement support level.

Yesterday, technical indicators started to show some bullish signs.

After 15 successive lower momentum bars, the MACD finally created one higher (green icon). This was a sign that the short-term trend is gradually picking steam. 

Furthermore, the RSI generated a bullish divergence (green line). This is a bullish occurrence in which a price decrease is not accompanied by the same increase in selling momentum.

However, BTC reversed its trend on Nov 26 and is in the process of creating a bearish engulfing candlestick (red icon). This is a type of bearish candlestick in which the entire previous day’s increase is negated the next day. There are still more than 15 hours until the daily close, but the start of the day looks extremely bearish.

If a breakdown were to occur, the next support area would be found at $53,250.

Short-term BTC movement

The six-hour chart shows that BTC has been decreasing under a descending resistance line since Nov 19. This is a sign that BTC is correcting.

Furthermore, BTC created a lower high relative to the price on Nov 20. This is considered a bearish sign since it didn’t have enough strength to reach its previous highs.

The even shorter-term two-hour chart shows that BTC is trading inside a symmetrical triangle and is very close to its support line, which coincides with the $56,500 horizontal support area. 

Therefore, a breakdown from it would likely accelerate the drop.

Wave count

The wave count suggests that BTC is in the C wave (red) of an A-B-C corrective structure. This means that after the correction is complete, the upward movement is expected to resume. 

The sub-wave count is shown in pink. It shows that BTC is in wave five of the correction, which is the final phase. 

There is a considerable Fib confluence between $53,250-$53,800, created by: 

  • Length of sub-wave one (pink)
  • External retracement of sub-wave four (white)
  • Length of wave A (red)

These levels also coincide with the long-term Fib support outlined in the first section. Therefore, BTC is expected to reach a low in this area before reversing.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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South Korea Crypto P2P Trading Hits New Highs as Regulators Debate Taxation

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South Korea Crypto P2P Trading Hits New Highs as Regulators Debate Taxation

P2P crypto trading has hit a new all-time high in South Korea, data from LocalBitcoins shows. The jump in P2P trading comes at a time when there is a lot of uncertainty surrounding regulation in the country.

Peer-to-peer trading of cryptocurrencies in South Korea is hitting all-time highs as regulators offer some ambivalent comments on regulation. Data from LocalBitcoins shows that over 353 million in Korean Won was traded in the first week of November. This is a significant jump from previous weekly volumes.

South Korean P2P trading volume: Coin Dance

Pondering crypto tax

The increased interest in P2P trading comes as regulators are working on implementing a regulatory framework. South Korea, already one of the leading governments when it comes to cryptocurrency market regulation, is doubling down on its bid to prevent any illicit activity.

The high P2P volume may be a result of investors seeking to make the most of their capital as regulators bear down. Recent reports have indicated that there is some confusion among investors because of the lack of clarity surrounding regulation.

One of the primary issues is the implementation of crypto taxation. South Korea officials announced that it would tax the asset class, to the tune of 20%.

But lately, reports have suggested that there could be a change or complete repeal to this taxation scheme. The taxation law will come into effect in 2022, though it remains unclear about what specific form it will take.

NFT regulation is also throwing more confusion into the mix, as the Financial Services Commission (FSC) said in early November that it would not subject the special asset to taxation. However, later, the Vice Chairman of the organization said that tax provisions would be made for NFTs.

Uncertainty still looms

At the moment, it’s uncertain exactly what the regulatory landscape in South Korea will look like, given the lack of conclusion so far. The South Korean opposition party challenged the taxation scheme and pushed for a delay to 2023, demanding a more generous tax plan.

Exchanges are one of the major elements of the industry under the microscope, with 2021 seeing the first regulatory compliance certifications being sent to them. Several exchanges have had to shut down following regulatory scrutiny.

As it stands, it’s unclear what the specifics of crypto regulation will be. However, it’s almost certain that there will be a framework implemented, and whether or not it is stricter than investors like remains to be seen.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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