Clues to Pluto's history lie in its faults

by Joanna Wendel, American Geophysical Union

Scientists studied Pluto’s “heart” to better understand how thick its lithosphere is and thus

 how it formed. Credit: NASA/JHUAPL/SwRI

The world first glimpsed Pluto up close when NASA's New Horizons spacecraft whizzed by it in July 2015. One of the most exciting discoveries scientists made based on New Horizons data was that Pluto, despite orbiting at more than 5 billion kilometers from the sun, may contain a liquid water ocean under its water ice surface.

This liquid water ocean has huge implications for how Pluto formed and retained enough heat to melt all that ice. In the years since the New Horizons flyby, two general formation hypotheses have emerged. The first starts with a "cold" Pluto, which involves Pluto forming over millions of years by the slow accretion of cold objects. This version of Pluto eventually would have coalesced enough material that radiative heating from the inside would melt the subsurface ocean. The other hypothesis involves a "warm" or "hot" Pluto, in which Pluto formed over a shorter time period in violent collisions that heated its interior, formed the ocean, and eventually cooled the planet into the majority ice ball we know today.

One clue that can help scientists understand Pluto's formation is the thickness of its outer icy crust as well as the geological features that make up its surface. In a new study, McGovern et al. focused on Sputnik Planitia, a vast basin that makes up the western portion of Pluto's bright "heart." Sputnik Planitia formed after an impact and eventually filled in with nitrogen ice. Heat driven by convection formed cell-shaped structures in the nitrogen ice, which has captivated scientists. This basin measures 1,500 × 900 kilometers and features a ridge that rises 1 kilometer above the surrounding landscape. Fractures and cracks radiate from the basin like spokes on a bicycle wheel, the authors write.

These fractures and cracks are key to understanding how the nitrogen ice load affects Pluto's surface, which would depend on how thick that surface is. The nitrogen ice pushes down on Pluto's outer layer, or lithosphere. Depending on the thickness of the lithosphere when the nitrogen ice first flowed into the basin, different patterns of cracks would form.

The researchers ran computer models testing various starting conditions for Sputnik Planitia to find the lithosphere thickness that best fits today's geological features. They found that the lithosphere is probably 45–70 kilometers thick and that the initial depth of the impact crater that forms Sputnik Planitia was probably shallow, no more than 3 kilometers deep.

McGovern and colleagues note that their finding is consistent with the "hot" theory of Pluto formation that posits Pluto formed via violent impacts and started out with more liquid, much of which froze over the following millennia. They also note that the stress on the outer shell created by the nitrogen ice is probably facilitating some cryovolcanism at several sites surrounding Sputnik Planitia.Cracking the mystery of nitrogen ice dynamics on Pluto

More information: P. J. McGovern et al, Tectonism and Enhanced Cryovolcanic Potential Around a Loaded Sputnik Planitia Basin, Pluto, Journal of Geophysical Research: Planets (2021). DOI: 10.1029/2021JE006964

Journal information: Journal of Geophysical Research: Planets 

Provided by American Geophysical Union 

TIS A PUZZLER

Research finds little genetic basis for some sea stars staying healthy amid deadly wasting syndrome

by Steve Lundeberg, Oregon State University

Credit: Oregon State University

Healthy-looking ochre sea stars have minimal genetic difference from those displaying symptoms of sea star wasting syndrome, say Oregon State University researchers who examined whether genetic variation was the reason some animals went unaffected during an epidemic of the deadly disease.

Without genes promoting resistance to wasting syndrome, the iconic Pacific Ocean sea star's ability to persist through future outbreaks is in greater doubt, the scientists say.

Findings were published in Molecular Ecology.

Also called the purple ochre and known scientifically as Pisaster ochraceus, the ochre sea star saw its populations hit hard for three years starting in 2013 by a wasting syndrome epidemic that scientists believe to be the largest marine wildlife disease event in history.

Wasting syndrome affected populations of 20 species of sea stars ranging from Baja California to the Gulf of Alaska, including P. ochraceus, considered a keystone species—one on which other species in an ecosystem lean heavily. The ochre sea star was pummeled over a large portion of its range. Along the Oregon coast, for example, the researchers note that populations underwent declines ranging from 50 percent to 94 percent.

The interplay between climate change and disease is threatening wildlife species as never before, said Oregon State's Andrea Burton, particularly when the result is rapid and extreme drops in population.

"A changing climate is causing the ocean to warm and those rising sea water temperatures are putting more and more stress on marine ecosystems," said Burton, who led the genetic variation study. "As a result of that stress, marine diseases have become more prevalent over the last few decades. Disease outbreaks cause changes in ecosystems' community structure and the age distribution within species. A lot of marine taxa have suffered severe declines in population because of outbreaks."

Burton, a Ph.D. candidate in integrative biology, and OSU collaborators Sarah Gravem and Felipe Barreto examined a total of 200 individual purple ochre to look for genetic variation between healthy specimens and sick ones. The sea stars were collected from six sites on the central Oregon coast in 2016, when apparently normal sea stars and wasting sea stars were both common at each site.

"Our reasoning was that a sick sea star and healthy sea star nearby were likely exposed to similar conditions, so maybe the ones that looked healthy had some type of genetic predisposition toward resistance or tolerance to sea star wasting syndrome," Burton said. "It was a unique chance to compare apparently normal and wasting individuals from the same time and place during the sea star wasting syndrome epidemic."

The scientists took note of observable disease symptoms based on a six-level ranking protocol, ranging upward from twisting arms to deflation, lesions, missing arms, loss of grip on rocks and finally disintegration or "melting." Only animals with none of those symptoms were considered healthy.

"Through a number of genomic techniques, we found that genomic differentiation between normal-looking and wasting sea stars was very low," Burton said. "With little genetic variation to propel adaptation, we definitely have even more concerns regarding how this species of sea star will fare in future outbreaks."

But while a genetic basis for wasting syndrome resilience is probably weak, researchers did identify a list of genomic regions with some association with disease resistance, she said. Those parts of P. ochraceus DNA may have small but cumulative effects in determining how a sea star does in the face of wasting syndrome and thus should be studied further, Burton added.

"Assessing the potential for natural population resilience is a huge piece of predicting the long-term prospects for affected species and all of the species and communities they influence," she said. "Some marine species are suitable for selective breeding but many others are not, so examining genomic variation in natural populations can help answer the question of whether a species has the genetic makeup to withstand diseases on its own."Long-term monitoring reveals effects of sea star wasting along Oregon coast

More information: Andrea R. Burton et al, Little evidence for genetic variation associated with susceptibility to sea star wasting syndrome in the keystone species Pisaster ochraceus, Molecular Ecology (2021). DOI: 10.1111/mec.16212

Journal information: Molecular Ecology 

Provided by Oregon State University 

Increased storminess may give rise to North Atlantic's 'cold blob'

by Matt Swayne, Pennsylvania State University

While the rest of the world warms, a mysterious area in the North Atlantic seems to be becoming colder. Using computational techniques, a team of researchers are beginning to understand why—and what that means for the climate.  Credit: Wikimedia

While climate change is making much of the world warmer, temperatures in a subpolar region of the North Atlantic are getting cooler. A team of researchers report that changes in the wind pattern, among other factors, may be contributing to this "cold blob."

In a study published in Climate Dynamics, the researchers report that a northward shift in the jet stream is contributing to a cooling of about .7 degrees Fahrenheit over the past century. Using computer simulations, the researchers found that more than half—54 percent—of the observed cooling trend is a result of increased heat loss from the ocean induced by the overlying atmosphere. Strengthened local convection—whereby ocean mixing brings cold water from depth to the surface—explains another 38 percent of the trend.

According to the team, storminess increased in the region because the jet stream moved northward. As a result, there are more frequent and more intense storms in this region. The increase in storminess creates a stronger heat loss from the ocean and induces stronger convection in winter, leading to cooler temperatures in the region.

According to Laifang Li, assistant professor of meteorology and atmospheric science, Penn State, who is also an Institute for Computational and Data Sciences co-hire, the researchers' findings run counter to some past studies that have suggested that the cold blob is evidence of a slowdown in the Atlantic Meridional Overturning Circulation—or AMOC—a large system of ocean currents that carry warm water from the tropics northwards into the North Atlantic.

Scientists hypothesize that a severe disruption to—or, worse, a shutdown in—the AMOC would have devastating consequences for many regions of the world, including creating almost Ice Age-like conditions in Europe and North America, according to Li.

"If we think about the AMOC as the supply train for heat into the subpolar ocean, as the AMOC slows down, the most straightforward effect is that the subpolar ocean will be much colder," said Li. "That would more likely cool Europe's climate because the region is not receiving the same heat as it did before."

However, scientists will still need more research to determine if the AMOC can be completely ruled out as a factor in the cold blob formation, said Li, who worked with M. Susan Lozier, professor and Dean and Betsy Middleton and John Clark Sutherland Chair at Georgia Institute of Technology, and Feili Li, professor of physical oceanography, Xiamen University.

"Our studies suggest that the atmosphere is playing an important role, but we do not rule out the contribution of other factors such as a change in the AMOC," said Li. "We are still uncertain about the precise attribution of this cooling trend to a specific mechanism. So, I think there are still a lot of open questions that need to be addressed."

The study underscores the complexity of the phenomenon.

"Our work is further demonstration that sea surface temperatures in the subpolar North Atlantic are not easily explained by a single mechanism," said Lozier. "Instead, we expect both atmospheric and oceanic dynamics, and their interaction, to drive variability in the sea surface temperatures in this climatically important region."

Scientists have also been interested in this blob of cold water because it runs counter to the global warming trend, according to Li.

"This region may seem to be an outlier of what we might expect from the anthropogenic greenhouse effect, which is making most of our world warmer," said Li. "But obviously, this cooling and its causal factors are a local manifestation of the greenhouse effect. It does make this region unique, though, and is one of the reasons that prompted us to start this study."

To create the simulations, the team relied on data from the National Oceanic and Atmospheric Administration (NOAA), the Met Office and the Climate Data Store. They ran their models on Penn State's Roar supercomputer, which is maintained by ICDS. Modeling weather and climate phenomena is complex because there are many variables to consider, including the interaction between both the atmosphere and the ocean, said Li.

Li expects those computational resources to be more important as the investigations into the cold blob and climate change progress.

"The atmosphere and ocean coupling may be more important than people thought," said Li. "Previously, people thought the ocean in the middle or high latitudes was more passive compared to the tropical oceans. But, now, more studies are suggesting that the subpolar ocean can also feed back to the atmosphere, forming a positive coupling process, which could potentially amplify the temperature contrast between the tropic, subtropical and sub-polar region."

Future work will likely examine how the weather in this region will react as the climate warms, according to Feili Li.

"To what extent the subpolar temperature would change and how in a warming climate are important questions," said Feili Li. "After all, our goal is to isolate and weigh individual components of a very complex system."

Nonlinear effects of wind on Atlantic ocean circulation

More information: Laifang Li et al, Century-long cooling trend in subpolar North Atlantic forced by atmosphere: an alternative explanation, Climate Dynamics (2021). DOI: 10.1007/s00382-021-06003-4

Journal information: Climate Dynamics 

Provided by Pennsylvania State University 

Proof of 9,200 year-old Solar Storm hitting Earth found; Another will spell DISASTER

Akash Dutta 

HINDUSTAN TIMES

About 9,200 years ago, Earth faced a massive solar storm that not only caused damage to the planet but also carved permanent marks on icebergs. These icebergs, which are now deep underwater around Greenland and Antarctica, have been discovered and scientists have conducted tests to conclude that the marks were made by one of the strongest solar storms ever witnessed by planet Earth. Now, the question that arises is what will a similar storm in present times do? And the answer is worrying.

"These enormous storms are currently not sufficiently included in risk assessments. It is of the utmost importance to analyze what these events could mean for today's technology and how we can protect ourselves." Raimund Muscheler, co-author of the solar storm study and geology researcher at Lund University in Sweden, said in a statement.

Ancient solar storm: What does it tell us

Reported by LiveScience, one of the most interesting things about this study’s finding is that it occurred during a solar minimum. Solar minimum is the period during the 11 year solar cycle of the Sun when coronal mass ejections (CME) and solar storms are less common. However, these new findings of the study have put into question our understanding of solar storms and the solar cycle. It will not be unsurprising if Earth ever gets caught into a severe solar storm at a time when it was least expecting it.

The concerns are significant. A solar storm like this today will destroy every communication and GPS satellite in space, cause massive power grid failures and will definitely take us to the dark ages for a while. Additionally, the radiation itself can cause damage to crops starting a famine and can start forest fires. Skin damage and an increase in lethal diseases like cancer is also not entirely out of question.

"This (solar storm) further pushes the magnitude of a potential worst-case scenario for (similar) events," the study read. However, looking at the silver lining, this finding will also help the scientific community in investigating more such ancient solar storms and improve both our understanding of the potential damage they can and find suitable solutions to guard us against them.

Even dying stars can still give birth to planets

by KU Leuven

Discs surrounding so-called evolved binary stars not uncommonly show signs that could 

point to planet formation. Credit: N. Stecki

Planets are usually not much older than the stars around which they revolve. Take the sun: It was born 4.6 billion years ago, and not long after that, Earth developed. But KU Leuven astronomers have discovered that a completely different scenario is also possible. Even if they are near death, some types of stars can possibly still form planets. If this is confirmed, theories on planet formation will need to be adjusted.

Planets such as Earth, and all other planets in our solar system, were formed not long after the sun. Our sun started to burn 4.6 billion years ago, and in the next million years, the matter around it clumped into protoplanets. The birth of the planets in that protoplanetary disc, a gigantic pancake made of dust and gas with the sun in the middle, explains why they all orbit in the same plane.

But such discs of dust and gas needn't necessarily only surround newborn stars. They can also develop independently from star formation, for example, around binary stars of which one is dying (binary stars are two stars that orbit each other, also called a binary system). When the end approaches for a medium-sized star (like the sun), it catapults the outer part of its atmosphere into space, after which it slowly dies out as a so-called white dwarf. However, in the case of binary stars, the gravitational pull of the second star causes the matter ejected by the dying star to form a flat, rotating disc. Moreover, this disc strongly resembles the protoplanetary discs that astronomers observe around young stars elsewhere in the Milky Way.

This, we already knew. However, what is new is that the discs surrounding so-called evolved binary stars not uncommonly show signs that could point to planet formation, as discovered by an international team of astronomers led by KU Leuven researchers. What's more, their observations show that this is the case for one in ten of these binary stars. "In 10 percent of the evolved binary stars with discs we studied, we see a large cavity (a void/opening, ed.) in the disc," says KU Leuven astronomer Jacques Kluska, first author of the article in the journal Astronomy & Astrophysics in which the discovery is described. "This is an indication that something is floating around there that has collected all matter in the area of the cavity."

Second-generation planets

The clean-up of the matter could be the work of a planet. That planet might not have formed at the very beginning of one of the binary stars' life, but at the very end. The astronomers moreover found further strong indications for the presence of such planets. "In the evolved binary stars with a large cavity in the disc, we saw that heavy elements such as iron were very scarce on the surface of the dying star," says Kluska. "This observation leads one to suspect that dust particles rich in these elements were trapped by a planet." By the way, the Leuven astronomer doesn't rule out the possibility that in this way, several planets can be formed around these binary stars.

The discovery was made when the astronomers were drawing up an inventory of evolved binary stars in our Milky Way. They did that based on existing, publicly available observations. Kluska and his colleagues counted 85 of such binary star pairs. In ten pairs, the researchers came across a disc with a large cavity on the infrared images.

A full disc (left); a disc with a large cavity possibly made by planets (right). Credit: N. Stecki

Current theories put to the test

If new observations confirm the existence of planets around evolved binary stars, and if it turns out the planets were only formed after one of the stars had reached the end of its life, the theories on planet formation will need to be adjusted. "The confirmation or refutation of this extraordinary way of planet formation will be an unprecedented test for the current theories," according to Professor Hans Van Winckel, head of the KU Leuven Institute of Astronomy.

The KU Leuven astronomers soon want to verify their hypothesis themselves. To this end, they will use the big telescopes of the European Southern Observatory in Chile to take a closer look at the ten pairs of binary stars whose discs show a large cavity.First ALMA animation of circling twin young stars

More information: J. Kluska et al, A population of transition disks around evolved stars: fingerprints of planets. Catalog of disks surrounding Galactic post-AGB binaries, Astronomy & Astrophysics (2021). DOI: 10.1051/0004-6361/202141690

Journal information: Astronomy & Astrophysics 

Provided by KU Leuven 

Great white sharks disappearing from shark hotspot has major impact on seal stress levels: Research

Great whites have disappeared from South Africa’s False Bay

CHATHAM MA. – AUGUST 29: Seals are seen off a Atlantic White Shark Conservancy charter boat off Ryder’s cove on August 29, 2021 in Chatham, MA.

 (Staff Photo By Nancy Lane/MediaNews Group/Boston Herald)

By RICK SOBEY | rick.sobey@bostonherald.com | Boston Herald

PUBLISHED: January 30, 2022 

Cape Cod seals that are under constant threat from great white sharks during the summer and fall are likely very stressed out, according to new research.

Shark scientists have discovered that stress levels in seals have significantly dropped following the loss of great white sharks off of South Africa’s False Bay.

The Cape fur seals have also started drifting farther from the shore over deeper water, a behavior that would have previously made them susceptible to shark attacks.

The recent decline and then disappearance of great whites “provided an unparalleled opportunity to investigate the consequences of losing an apex predator on the behavior and physiology of their prey, a scenario usually extremely difficult to study in the wild,” said Neil Hammerschlag, director of the Shark Research and Conservation Program at the University of Miami.

The research team has been collecting seal poop samples from the seal colony in South Africa’s False Bay, and measured the hormones levels in their feces. The seal stress levels plummeted following the loss of great whites from the region.

“To our amazement, stress hormone levels measured in the seal feces were more than four times lower on average in the absence of great whites,” Hammerschlag said.

“We also observed behavioral changes in the seals,” he added. “Seals are now rafting farther from shore over deeper water, a behavior that would have certainly put the seals at risk of shark attack if any were still around.”

False Bay in South Africa has been a famous hotspot for great white sharks, as they’ve patrolled the waters to hunt for seals.

Great whites over the last couple of decades have been seen launching more than 40 attacks a day on seals. Sharks have been observed jumping out of the water and snatching seals.

Researchers wanted to know if the predation risk from great whites was influencing seal’s stress levels, so they started collecting seal feces off the island’s rocks. The results revealed that the seals were experiencing high levels of stress from the risk of shark attacks — quadruple the levels of seals on islands that are not exposed to such a high shark attack risk.

Then when the apex predators disappeared, the research team had the sudden opportunity to test the impact of sharks leaving the area.

The researchers said this study is the first recorded evidence in the wild of physiological changes in prey due to the loss of an apex predator.

Changes measured in prey behavior during loss of apex predators

by Bob Yirka , Phys.org

Figure 1. Annual trends in (a) white shark relative abundance, (b) predatory attacks on 

seals and (c) seal rafting proximity to Seal Island prior to (gray) and following the decline 

(black) of white sharks. Data are mean ± standard error of (a) white shark sightings per

 hour, (b) white shark predations per hour and (c) seal rafting distance category, averaged

 across sampling days for each year. Seal rafting distance was estimated according to 

one of three categories: (i) seals rafting <5 m from the island; (ii) seals rafting >5 m and 

<10 m from the island and (iii) seals rafting >10 m from the island perimeter. 

Credit: DOI: 10.1098/rsbl.2021.0476

A team of researchers has documented the changes that occurred to a type of prey (cape fur seals) when their predator (great white sharks) disappeared from their environment. In their paper published in the journal Biology Letters, the group describes their study of the seals both before and after the sharks left the environment.

As the researchers note, much research has been conducted regarding the impact on prey when new predators enter an environment, but few efforts have sought to learn more about the opposite scenario. In this new effort, the researchers found a unique opportunity to learn more about what happens to prey in general when a predator departs—for whatever reasons—when great white sharks began disappearing from the shores of South Africa.

Prior research has shown that approximately 1.5 to 2 million cape fur seals live along South Africa's coasts and nearby islands. Research has also shown that the only predator of cape fur seals has been great white sharks because the seals are too large to be bothered by other meat-eating ocean dwellers. Ocean scientists in the area began to notice declines in the number of great white sharks living in the area in 2015 and since that time, they have disappeared from the area entirely, though it is still not clear why. With the disappearance of the sharks, the researchers found themselves with a golden opportunity to learn more about what happens to prey when their predator is removed from the scene.

The work by the team first involved simply watching the seals as they went about their normal lives to see if they could spot any behavioral changes. They found that the seals began venturing farther out to sea and rafting over deeper waters—activities that would have previously put them at an increased risk of an attack.

The researchers also began comparing seal scat samples gathered from beaches from the time before the sharks disappeared to after. The scat contains traces of fecal glucocorticoid concentrations, which can be used to measure stress levels. Researchers found that the stress levels of the seals were greatly reduced after the sharks disappeared.Stress test: New study finds seals are stressed-out by sharks

More information: Neil Hammerschlag et al, Loss of an apex predator in the wild induces physiological and behavioural changes in prey, Biology Letters (2022). DOI: 10.1098/rsbl.2021.0476

Journal information: Biology Letters 

© 2022 Science X Network

INDIA

Budget 2022: Crypto Assets are Being Taxed but Like Cocaine They are Not Yet Legal
K Yatish Rajawat 

Finance Minister Nirmala Sitharaman has announced that earnings from virtual digital assets will be taxed at 30 per cent; any capital losses on such assets cannot be settled against other capital gains.

Virtual digital asset is the official nomenclature that will be used from now on for crypto assets, or any other digital tokens like non-fungible tokens (NFT). I have said several times that these digital tokens need to be controlled, the so-called exchanges selling them need to be monitored and regulated. In the Wild West World of these assets, there are no rules and players brazenly advertise and even promise gains. And, they even “advice” that the RBI needs to issue CBDCs (Central Bank Digital Currency) or Digital Rupee.

These exchanges keep changing the location of their permanent establishment to avoid scrutiny and taxation. While all the time acting as holier-than-the-world and saying they want to be regulated, globally. Yes, they seek “global regulations” for the local mischief they are doing. They want the governments of the whole world to come together before acting towards controlling these exchanges or forcing them to meet a nation’s regulatory requirement.

It is like a pharmaceutical company selling opioids and saying we won’t be classified as a narcotic-class addictive drug by any country till such time ALL the countries do not classify opioids as such.

The FM in her budget speech reiterated most of my suggestions.

But now that the government has decided to tax these tokens, founders of the so-called crypto exchanges are again going to the market, falsely claiming their tokens have been recognised, legitimised. The founders and CEOs of these exchanges have been issuing misleading communication, fooling investors about these assets.

Let me give another analogy to make it clear. Can a cocaine seller who pays tax on his earning from selling a banned product like cocaine claim legitimacy for cocaine? Can he claim legitimacy because he is paying taxes on his earnings? His earnings are being recognised, not the product he is selling. He is still liable for action and arrest under the IPC code for selling narcotics. While a lot of investors may call this analogy with cocaine or opiates wrong, but it is important to note the similarities.

As a matter of fact, when Al Capone, the Chicago Mafia head, was arrested in 1931 for tax evasion, his defence was, “They can’t collect legal taxes from illegal money.” He was arrested and sent to jail for 11 years for tax evasion. This is because earnings from illicit trade are also subject to taxation.

Even opiate makers managed to fool the US FDA for a long time by refusing to be classified as narcotics addictive drugs. They kept talking about the ability of their drugs to ease pain for their users, hence demanding exemption from narcotic classification. Similar to crypto exchanges, who keep talking about blockchain, decentralised finance and lately Web 3.0 and its ability to ease transaction costs and reliability. All this ability, they argue, is in the interest of greater good, rather only for the public good. This is a fast one and they are succeeding in pulling this farce as they are buying out media and influencers to promote it.

The new definition will even cover non fungible tokens (NFTs) as they are also digital assets. Several people have got on to the bandwagon of NFTs, using it to convert black money into white.

The process is very simple, an NFT is created around some meaningless item, and sold to a compromised buyer for an enormous amount of money. As of now such token transactions were not taxed, and it was the easiest way to convert your income from black to white. Even store it in the form of crypto assets outside the country through dubious exchanges.

This is similar to ‘Art scam’ practised by a section of the bureaucracy in the ‘90s. A bureaucrats’ wife would make and sell a painting for an unheard of price to a buyer who’s seeking favours from the officer. Nobody could object to the transaction or the value as it was considered art whose value was indeterminate. This is what is happening in the NFT space too, a digital asset with uncertain value is being sold at a huge price, nobody knows whether the value is real or fictional. Once the transaction is taxed, the tax paid will be in real currency, forcing the real value to be revealed.

Which is why the proposal to impose a TDS on digital tokens’ transactions will help the Income Tax department identify the buyer and seller. And the market places which are conducting these transactions will be responsible for ensuring that this TDS is collected and paid. This would ensure that the uncertain tax status of these exchanges and their earnings would also come under the ambit of the taxman.

The central bank digital currency or the Digital Rupee will ensure that global wholesale transaction costs come down. One of the first adopters of the Digital Rupee should be exporters, importers and e-commerce companies. This will help them carry out their transactions faster with customers globally, reducing the cost of transactions.

If the RBI makes it mandatory that Digital Rupee has to be used for all foreign transactions, the money laundering currently happening through foreign banks will also stop. There is another very important and significant shift that may happen if these transactions become mandatory, which is the need for localisation. RBI may not go heavy on localisation of data if compulsory CBDCs become a success in the system. These are early days, but there is more to come in this space.

The author is CEO, Center for Innovation in Public Policy. The views expressed in this article are those of the author and do not represent the stand of this publication.

Modi government crypto tax aims to maximise state revenue, deter low-income investors

The Budget gave a crypto tax scheme to meet several policy goals. But here are the loopholes that you're missing.

MEGHNA BAL
2 February, 2022 

Finance Minister Nirmala Sitharaman presents Union Budget 2022 | Twitter/ANI

In her 2022 Budget speech delivered on 1 February, Finance Minister Nirmala Sitharaman announced that virtual digital assets, including cryptocurrencies, will be covered by a taxation scheme. Though the scheme is new, the principles that it relies upon and the issues that are likely to arise from its implementation are fairly conventional.

The first principle at play is ensuring that no earnings from virtual digital assets (VDAs) escape the tax net. The new tax scheme attempts to do this by defining VDAs very broadly. The definition is agnostic in form as well as the technological underpinnings of VDAs. Illustratively, VDAs can be “any information, code, number, or token (that is not foreign or domestic fiat currency)” generated through “cryptography or other means and provide a digital representation of value”.

The definition of VDAs also includes assets that are transferred for no monetary consideration. Such transactions include gifts as well as peer-to-peer exchanges of VDA. Such a definition also attempts to extensively cover VDA functionality. It recognises that they can have inherent value, resemble money, and operate as commodities. VDAs that fall beyond the ambit of this expansive definition are also covered because the Narendra Modi government is empowered to notify any digital asset as a VDA.

This definition of VDAs also covers any token, including non-fungible tokens (NFTs). For the uninitiated, NFTs are non-interchangeable pieces of information on a blockchain. Furthermore, the government will now specify the NFTs that qualify as VDAs, which raises some ambiguity about the tax status of the income earned from their transfer. However, it may be the case that the Modi government will release more comprehensive provisions for different classes of NFTs in the coming months.

Also read: How Modi govt has given legal sanction to cryptocurrencies in India, through the backdoor

It’s disincentivising for some

The second principle is to use a high tax rate as a disincentive for individuals with low incomes from investing in VDAs. Income earned from these is taxable at 30 per cent – the same rate at which Short Term Capital Gains above Rs 10 lakhs are taxed.

Third, to deploy a tax-deductible-at-source (TDS) mechanism to understand the extent of activity in the VDA market. The Finance Bill 2022 introduces a Section 194S into the Income Tax Act, 1956, under which the person paying for the VDA must deduct income tax at the rate of 1 per cent from the transaction amount. The TDS is also applicable to transfers of VDAs where there is no cash component, such as a VDA to VDA exchange, or a peer-to-peer transfer. In such cases, the person must ensure that they have paid the tax for such a transaction.

The implementation of Section 194S will be riddled with complexity, particularly in scenarios where there is no fiat currency used for transactions. How will an assessee calculate the tax deductible if the prices for VDAs are not standardised? It is well established that VDA pricing varies from country to country and exchange to exchange. According to a report, on 24 November 2021, Bitcoin was priced at 33.5 lakhs on Wazirx and 41.94 lakhs on Binance. The differences in pricing are a function of several factors, including liquidity and transaction costs. Moreover, in such transfers, the person using non-cash means of consideration is responsible for paying the tax. Thus, in VDA to VDA exchanges, both parties have a tax liability.


The Finance Bill states that if any difficulties arise in the implementation of Section 194S, the Central Board of Direct Taxes (CBDT) will issue guidelines to ameliorate the situation. However, the Section’s complexity points to an intent to discourage unsophisticated investors from interacting with VDAs as well as peer-to-peer transactions and VDA swaps. An unintended consequence of the provision may be that an increasing number of people may resort to using anonymity-centric VDAs that are hard to trace.

Also read: India doesn’t understand crypto enough to pass regulatory law. Here’s all you need to know

Where the loopholes are

Fourth, to carve out exemptions to reduce the enforcement and implementation burden of the tax scheme. Two classes of persons are exempt from the TDS requirement for VDAs — those who pay a total of Rs 10,000 for VDAs in a financial year and a special class known as specified persons. The latter is an individual or a Hindu Undivided Family (HUF) whose total turnover/receipts from business does not exceed Rs one crore (or 50 lakh, in case they are professionals). This category also includes individuals/HUFs who do not have any profits or gains from their business or profession. Specified persons who pay a total of under Rs 50,000 for VDAs in a financial year will be exempt from the TDS requirement under Section 194-S.


Like all exemptions, the carve-outs under Section 194S create a loophole that is likely to be misused. For instance, a person may trade through several individuals who fit the description of specified persons, similar to how benami transactions are conducted in the case of immovable properties. Depending on how the situation evolves, the government may need to supplement this requirement with some provision for the identity of the ultimate beneficiary to check abuse.

Fifth, to make it clear to anyone investing in VDAs that they cannot be relied upon as a tax evasion instrument. Assessees cannot claim any deduction for expenditure, allowance, or set-off on income earned from VDAs other than the cost of acquisition. Moreover, losses incurred on VDA transfers cannot be used to diminish tax liability under other income slabs. Assesses will also not be allowed to carry forward such losses to succeeding assessment years.

The VDA tax scheme aims to ensure that all VDA transfers are taxable, create a mechanism to gather information on all such transactions in the country, discourage those in lower-income brackets from engaging with VDAs, and put up disincentives to VDA swaps and peer-to-peer transactions. While the 30 per cent income tax provision comes into effect on 1 April 2023, the one per cent TDS will be effective from 1 July 2022. The scheme is ambitious in both scope and design and is likely to face some hiccups during implementation.

Also read: Govt to take balanced view on cryptocurrency, says PEA Sanjeev Sanyal

Why tax when India is still debating legality?

On the tax scheme’s position about the legality of VDA transfers in India, the commentary is mixed. Those who say it does nothing to clarify the legality of VDAs cite the fact that proceeds from illegal activity are also taxable. However, even illegal activity is not recognised under the tax law. The Income Tax Act does not specify a tax rate for smuggling or extortion, though income earned from these activities is taxable.

Conversely, the Finance Bill creates a specific tax rate for VDAs, which indicates that the government may allow this activity in the long run. This position is also somewhat affirmed by a recent statement made by the Principal Economic Advisor, Sanjeev Sanyal, who suggested that the government was looking to take a balanced view on cryptocurrencies. The extent of what will be permitted and what will not shall be introduced in legislation specific to cryptocurrencies. On the linkage between privately-issued cryptocurrencies and Central Bank Digital Currencies — these are distinct constructs and commentators would do well to refrain from conflating them.

Meghna Bal is a Fellow at the Esya Centre and a consultant for Koan Advisory, a technology policy consulting firm. Views are personal.

This article is part of ThePrint-Koan Advisory series that analyses emerging policies, laws and regulations in India’s technology sector. 

Read all the articles here.
(Edited by Humra Laeeq)

Plan to attract 60 new rural doctors just a start to repairing Alberta's 'pretty bad reputation': local physician


Sean Amato
CTV News Edmonton
Published Feb. 1, 2022

A provincial plan to spend $6 million over the next few years to entice new doctors to rural communities is a good step but not nearly enough to address a "crisis," according to some with knowledge of rural medicine.

The UCP government announced the investment Monday and is calling it RESIDE, or Rural Education Supplement and Integrated Doctor Experience program.

“RESIDE will be key in attracting new family physicians to bring Albertans in rural communities the health care they deserve," Health Minister Jason Copping said.

RESIDE aims to add 60 new doctors in 15 rural communities.

The announcement comes amid the province's highest-ever COVID-19 hospitalizations, physician shortages causing temporary closures of some rural services, and negotiations over doctor pay.

Cold Lake is on the list for the program's first year. The city's mayor said any help is desperately needed.

"It’s in a crisis mode and we’ve been in this position for a while now," Craig Copeland told CTV News Edmonton.

"I really think in rural Alberta there needs to be a different funding envelope for the doctors. They’re very specialized, they’re vital to your community."

It's harder to find a doctor if you live outside of Edmonton, according to a recent study by the Canadian Institute for Health Information.

A Flourish chart

"It’s at the point where we could probably add several hundred rural family doctors and we’d still have a shortage," said Dr. Parker Vandermeer, who works in several rural practices.

"It also is a really challenging way to practice medicine because there’s much less support."

'ALBERTA, UNFORTUNATELY, HAS A PRETTY BAD REPUTATION'

Doctors selected for RESIDE will get a remote community incentive up to $40,000 and another $60,000 in tuition reimbursement.

The catch is that those doctors have to agree to three years of service.

"I don’t like the idea of there potentially being a new grad basically trapped in a community and feeling overwhelmed and feeling like they have to do this. Because that’s horrible for the physician but it’s also bad for the patients. It doesn’t put anyone in a good situation," Vandermeer said.

But there are other advantages for doctors who get out of the city, said an Edmonton doctor who started her career in rural areas.

"I think some of my most special times in my training were in rural communities," said Dr. Renee Nason.


Part of the appeal of working outside of a big city, she said, is being forced to learn a broad range of skills.

"What I would do in an urban practice is I would just refer to a physician that does it, whereas in a rural community you have to do that because there might not be another practitioner," Nason explained.

Nason also agreed with Vandermeer about the challenges. For her, though, the key to attracting new doctors is for the government to show them they're valued.

"Alberta unfortunately has a pretty bad reputation of how the government treats physicians here over the last couple of years," she said.

The communities selected for the RESIDE program are: Fox Creek, Grande Cache, Fort Vermilion, Wabasca, High Level, Rimbey, Lloydminster, Milk River, Cold Lake, Lac La Biche, Rocky Mountain House, Fort Macleod, Barrhead, Ponoka and Athabasca.

With files from CTV News Edmonton's Amanda Anderson

Dr. Rene Nason in a photo she supplied to CTV News Edmonton.

RELATED STORIES
Alberta announces incentives to lure doctors to rural communities

ALBERTA

Lab testing out-sourcing could mean longer testing wait times for rural residents

Parkland Institute is questioning the Alberta government’s plan to turn over lab testing to DynaLIFE. (Black Press file photo)

Parkland Institute also says much uncertainty for lab staff job futures

• PAUL COWLEY 
• Jan. 31, 2022 .
• LOCAL NEWS

      

Lab staff face job uncertainty and rural Albertans could have to wait longer for test results as the province out-sources most lab services to a private company.

A new Parkland Institute report released on Monday questions the huge savings the Alberta government has touted through its privatization plan and its promise of more efficiency with its deal with DynaLIFE Medical Labs to take over much of the testing from Alberta Precision Laboratories (APL).

“The DynaLIFE deal rewards a large corporation and its shareholders over the current and long-term interests of Albertans,” says report author Rebecca Graff-McRae, a research manager at Parkland Institute. “It offers false economies, minimal savings, a smaller and demoralized workforce, a massive infrastructure deficit, and a fragmented system with little accountability.

The provincial government said last week that no job losses are anticipated when DynaLIFE begins delivering community laboratory services across the province on July 1. Approximately 65 per cent of provincial lab work, or 50 million tests per year, is generated from the community and will be delivered by DynaLIFE under contract to Alberta Health Services.

Graff-McRae said the job assurances leave out some important details.

“The official line on this is that DynaLIFE will be transitioning all the jobs over from APL. In theory, in that initial phase there shouldn’t be any job losses.”

However, in interviewing lab staff, Parkland heard skepticism based on previous privatization moves that workers will be offered the same roles in the same location. That could mean some facilities have fewer staff than previously or positions combined.

“The accounting adds up, but in terms of people’s lives and their livelihoods it might certainly not look the same as it does now.”

In Red Deer, a lot of in-house testing is done and processed on site. Now, some of that testing will be done in Edmonton and Calgary.

How that will affect the staff doing that work is unclear. Will they be shifted to other roles at the hospital or be offered the same positions but elsewhere?

“That’s not confirmed, but when you go through how this process is going to work that seems really likely for the people who have experienced this before. There are no guarantees in any of this.”

In smaller communities, APL will continue to do the testing.

That is likely to lead to unnecessary duplication and involve couriers taking samples to different processing facilities depending on whether they are heading to APL or DynaLIFE.

The reason the previous NDP government tried to streamline that process was to avoid that scenario, she said.

“It might not have been a magic wand, but it reduces that duplication and that confusion.”

Having two testing and processing streams could also create longer wait times for results. Tests may not be headed to the closest facilities or DynaLIFE could choose to “batch” samples, gathering a large number together before sending them for processing to make it more cost effective.

A lab assistant in Central zone told Graff-McRae they were concerned people would have to wait longer for their diagnosis and services outside Edmonton and Calgary could be taken away, further increasing wait lists.

Much of the uncertainty is a result of a lack of consultation with those working in testing labs and processing facilities, she said.

Besides the potential for the changes to prove less efficient than promised, Graff-McRae said the government’s estimates that hundreds of millions will be saved is questionable.

Parkland used FOIP to get financial records from Alberta Health Services and APL that suggested the move could save $18 million to $36 million a year at most, far less than the $102 million in an Ernst and Young performance review of AHS, said Parkland’s report.

Even those savings are created by reduced lab staff wages and benefits, reduced accessibility for patients and automation, it say