United States Senate Financial Services Committee Chair Ron Wyden and ranking member Mike Crapo released an open letter to the digital asset community on July 11 asking for input on the taxation of digital assets. The senators are looking for solutions to highly complex taxation issues, so much so that they offered background reading from the Joint Committee on Taxation to prepare respondents.
The Internal Revenue Code of 1986 provides “no straightforward classification for digital assets,” the senators said. They asked a large number of questions grouped into nine subject areas, explaining:
“In recent months, the Committee on Finance initiated a bipartisan effort to identify key questions that lie at the intersection of digital assets and tax law.”
The letter covered issues relating to fair value (mark-to-market) accounting, the trading safe harbor to encourage foreign investment, digital asset loans, wash sales, constructive sales (which are closely related to short-selling), income from staking and mining, “nonfunctional currency,” reporting by foreign firms, and valuation and substantiation on an exchange. The questions make frequent reference to specific sections of the tax code.
Much of the Internal Revenue Service’s (IRS’) effort in regard to crypto so far has gone to countering criminal activities. It boasted earlier this year of seizing $10 billion in crypto all told in its law enforcement efforts.
— Bill Hughes : wchughes.eth (@BillHughesDC) July 11, 2023
The IRS is becoming more proactive in regard to income taxation as well. It claimed in a recent case, for example, that it issued a summons to crypto exchange Kraken in 2021 for user information on all transactions over $20,000. Kraken was ordered to provide that information by the District Court for the Northern District of California on June 30.
The Senate committee will be accepting responses to the letter through Sept. 8.
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The main road entering the besieged Syrian city of Sweida from the West has changed dramatically over twelve hours.
A bulldozer, parked on the side of the road, has been used to create several berms to form a sand barrier around 25km (16 miles) from the city centre.
Dozens of Syrian security forces were standing in lines in front of the barricades when we arrived, and there were forces further up the road stopping vehicles from going any further.
Image: Syrian security forces at a checkpoint outside the besieged city
The Arab tribal fighters we’d seen fighting furiously inside the city the day before were now all camped alongside the road. Some were sleeping on the back of their pick-ups.
“We’re not giving up,” one shouted to us as we walked towards the checkpoint.
The ceasefire agreement between Druze leaders who’re bunkered down inside the city and the Bedoins – and the tribal fighters who’d flock to join them – has frustrated some.
Some of them, waiting with guns slung over their backs, are itching to return to battle. But for now, tribal leaders have instructed them to hold fire.
Image: Arab tribal fighters have been blocked from entering Sweida by security forces
How long that will last is probably key to Syria’s future and whether it can be a peaceful one.
Khalaf al Modhi, the head of a group of tribes called United Tribes, told the group of fighters: “We are not against the Druze. We are not here to kill the Druze.”
But he spent many minutes castigating the senior Druze cleric inside Sweida whom many of the tribes see as the agitator behind the violent clashes.
Image: Khalaf al Modhi, who is the leader of a tribal group called United Tribes
Hikmat Al Hijiri is head of a Druze faction that is deeply suspicious of the new government led by Ahmed al-Sharaa and is resisting ceding power to Damascus.
The retreat of the Arab tribes from the city centre means the Druze militia under Hijiri’s control are now the ones deciding who goes in or out of the city.
About 30,000 mostly Druze people are thought to be trapped inside the city and surrounding towns, with no electricity, little internet and dwindling supplies of food and water.
Image: Druze civilian Kamal Tarrabey. He said ten of his relatives were killed in the violent clashes
The humanitarian situation is dramatically worsening by the day. But at the time of writing, there were still no agreed safe corridors to bring out those pinned inside.
On top of this, there are nearly 130,000 people displaced and forced out of their homes because of the fighting, according to UN estimates.
Maintaining the ceasefire is key to ensuring solutions are found to help those suffering, and quickly. It’s also the most serious challenge facing the new Syrian leader and his interim government.
The level of distrust between the Hijiri-led Druze faction and the new government is strong and deep. So much so that the Druze leaders have refused to accept truckloads of aid organised by any of the government outlets.
Image: The White Helmets wait outside Sweida as the Druze leaders accept little aid from them due to their government connections
The new Syrian leader has struggled to convince the country’s minorities that their safety under his leadership is assured.
Druze civilians and human rights activists reported mass killings and executions of Druze by government troops who were sent in last week to quell the latest clashes between the Druze and Arab Bedoins who have been at odds for many years.
Government forces pulled out of the city only after Israel unleashed a spate of airstrikes, saying they were defending the Druze. The bombings killed hundreds of Syrian troops.
But with the withdrawal of the government troops, the Arab Bedoin population said the city’s Druze militia embarked on a string of revenge atrocities.
That in turn led to thousands of tribal fighters massing from around the country to defend their Arab brethren.
Image: Smoke rises from buildings in the city centre of Sweida
When we were inside the city, we saw multiple corpses lying on the streets, and many appeared to have been killed with a shot to the head.
Homes and businesses are still burning after mass pillaging as fighters retreated.
And now, there is a growing humanitarian disaster unfolding.
Additional reporting by camera operator Garwen McLuckie, specialist producer Chris Cunningham, as well as Syrian producers Mahmoud Mossa and Ahmed Rahhal.
On Friday, Paola Paiva waited in a hotel near Caracas airport, nervous but giddy with excitement to be reunited with her brother, finally.
For five months, Arturo Suarez has been detained in a notorious prison in El Salvador.
“I am going to wait for my brother to call me,” she told Sky News, “and after giving him a hug, I want to just listen to him, listen to his voice. Let him talk and tell us his story.”
Suarez was one of the more than 250 Venezuelan migrants who had been living in America but were arrested in immigration raids by the Trump administration and sent to El Salvador, a showpiece act in the president’s promise to deport millions of migrants.
Image: Paola Paiva holds a vigil for brother Arturo Suarez. Pic: Reuters
Most of the men had never even been to El Salvador before. Their detention has been controversial because the White House claims the men are all part of the dangerous Tren de Aragua gang but has provided little evidence to support this assertion.
The only evidence Paola had that Suarez was still alive was a picture of him published on a news website showing the inside of the maximum security CECOT jail.
He is one of dozens of men with their hands and feet cuffed, heads shaved and bodies shackled together.
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Now he is returning to his home country, one of the bargaining chips in a deal that saw the release of ten Americans and US permanent residents who had been seized by the Venezuelan authorities.
Image: Venezuelans arrive back in home country after being detained in El Salvador
Paola had tried to go to the airport to greet her brother as he disembarked a charter plane bringing the men back from El Salvador but authorities told her to wait at a nearby hotel.
“They told us they are taking them all to a hotel to rest,” she said.
“But I managed to get someone to give my phone number on a piece of paper to my brother, so I am expecting his call tomorrow, as soon as he can access a phone.
“We heard they are going to perform some medical exams on them and check their criminal records,” she added. “I’m not afraid; I’m not worried since my brother has a clean record.
“I am so happy. I knew this day would happen, and that it would be unexpected, that no one was going to notify us. I knew it was going to be a total surprise.”
Image: US citizens released from Venezuela. Pic: Reuters
The Trump administration had paid the El Salvador government, led by President Nayib Bukele, millions of dollars to imprison the men.
Homeland security secretary Kristi Noem visited CECOT last month, posing in front of prisoners for a photo opportunity.
But Cristosal, an international human rights group based in El Salvador, says it has “documented systematic physical beatings, torture, intentional denial of access to food, water, clothing, health care,” inside the prison.
A video which was seemingly filmed aboard the charter flight bringing the Venezuelan migrants back to Caracas shows Arturo briefly talking about his experience inside.
He looks physically well but speaks into the camera and says: “We were four months with no communication, no phone calls, kidnapped, we didn’t know what (the) day was, not even the time.
“We were beat up at breakfast, lunch and dinner,” he continues.
Sky News interviewed Arturo Suarez‘s brother Nelson near his home in the US in April, weeks after Arturo – an aspiring singer – had been arrested by immigration and customs enforcement (ICE) agents while filming a music video inside a house.
Nelson said he believed Arturo’s only crime was “being Venezuelan and having tattoos.” He showed me documents that indicate Arturo has no criminal record in Venezuela, Chile, Colombia or the United States, the four countries he has lived in.
Now Nelson is delighted Arturo is being released – but worries for his future.
“The only thing that casts a shadow in such a moment of joy is that bit of anger when I think that all the governments involved are going to use my brother’s story, and the others on that flight, as political gain,” he said.
“Each of them will tell a different story, making themselves the heroes, when the reality is that many innocent people suffered unfairly and unnecessarily, and many families will remain separated after this incident due to politics, immigration and fear.”
At least 34 people have died after a tourist boat capsized in Vietnam, according to state media reports.
The Wonder Sea boat was reportedly carrying 53 people, including five crew members, when it capsized due to strong winds in Ha Long Bay on Saturday.
It happened at roughly 2pm local time (7am GMT). Rescue teams have found 11 survivors and recovered 34 bodies, eight of them children, the state-run Vietnam News Agency said, citing local authorities.
Image: Rescuer in Ha Long Bay are searching for survivors. Pic: QDND via AP
The People’s Army Newspaper, which cited local border guards, said authorities have not yet confirmed details about the tourists, including their nationalities, as the rescue operation continues.
Most of the passengers were tourists, including about 20 children, from the country’s capital city, Hanoi, the newspaper said.
The incident comes shortly after the arrival of Storm Wipha in the South China Sea, bringing strong winds, heavy rain and lightning to the area.
Image: A body being carried on stretcher after a tourist boat capsized in Ha Long Bay, Vietnam. Pic: QDND via AP
The named storm is the third typhoon to hit the South China Sea this year, and is expected to make landfall along the northern coast of Vietnam early next week.
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Disruptions linked to the storm have also had an impact on air travel, according to Noi Bai Airport.
The airport reported that nine incoming flights were diverted to other airports, while three outgoing flights were temporarily grounded due to adverse weather conditions.
Image: Tourist boats cruise in Halong Bay. File pic: Reuters
The winds brought by Storm Wipha reached up to 63mph (101kmph) and gusts of up to 68mph (126kmph) as it passed south of Taiwan on Saturday, according to the island’s Central News Agency.