if you are a business with a large collection of offshore dollars that cannot be brought onshore due to reparation taxation the easiest thing to do is convert the offshore balance to bitcoin.
i have a sneaking suspicion that this is the main reason Microstrategy originally did their first bitcoin purchase.
they avoided all capital and currency controls and reparation tax.
Pretty soon they all will realize there is not alternative
So microstrategy purchased bitcoin with offshore dollars. I'd be surprised if the tax law doesn't adapt to the new paradigm if it hasn't already.
Sneaky sneaky
Also likely why they're under investigation
under investigation?
Seems like the saylor investigation is more about tax residency... so maybe not connected.
i am talking about foreign held currency that was earned abroad and cannot be broaght back to the us without paying a reparation tax
https://finance.yahoo.com/news/tax-repatriation-does-215953572.html
however the lawsuit against saylor seems to have no legs
the reason i think MSTR did this for "repatriation" reasons is that onshore cash is usually held in t-bills and offshore cash is held in dollar denominated euro dollar bank accounts and michael has said that he used binance to make the initial purchases https://youtu.be/Jb48Q5e4WVg
which would only have been done with overseas dollars so he definitely moved dollars that could not easily be repatriated into bitcoin.
he may have had a melting ice cube but he had foreign dollars and this was his way of getting around a repatriation tax.
