DC Attorney General Sues Billionaire Michael Saylor & MicroStrategy For Tax Fraud – Seeks $100 Million – TaxBitcoin News

The District of Columbia Attorney General has charged Michael Saylor, founder and executive chairman of MicroStrategy, with tax evasion. The suit also names MicroStrategy as a defendant, alleging that it “conspired to avoid legally owed taxes.” Both Saylor and Microstrategy have denied the allegations. The attorney general is seeking more than $100 million in unpaid taxes and penalties.

District of Columbia billionaire Michael Saylor sued MicroStrategy

The District of Columbia Office of the Attorney General (OAG) announced Wednesday that Attorney General Carl A. Racine was joined by MicroStrategy Co-Founder and Executive Chairman Michael J. The indictment also names the Nasdaq-listed software company as “conspiring to evade the taxes it legally owes.”

The ad says Saylor has lived in the District of Columbia for more than a decade but has never paid any DC income taxes despite earning hundreds of millions of dollars.

DC Attorney General Sues Billionaire Michael Saylor and MicroStrategy for Tax Fraud - Seeks $100 Million

This is the first charge under the District’s recently passed False Claims Act, which encourages D.C. residents to report to whistleblowers who evade the District’s tax laws by misrepresenting their residence, the announcement explains.

Whistleblowers filed a lawsuit against Saylor in April last year, alleging that the billionaire defrauded the Bitcoin bull circuit and failed to pay income taxes legally owed from 2014 to 2020. The attorney general’s office intervened in the whistleblowing case and filed its own complaint against both Seiler and the software company.

According to the DC Attorney General:

The indictment alleges that Saylor lived in Florida, which has no personal income tax, and engaged in an elaborate scheme to create the illusion that he was living in the district.

Attorney General Racine has publicly called Saylor the district’s Georgetown neighborhood home since 2005, noting that the MicroStrategy founder lives in a 7,000-square-foot home on the Georgetown waterfront and docks at least two of his luxury yachts in the district. for a long time.

The district’s lawsuit alleges Saylor avoided paying more than $25 million in D.C. income taxes by claiming to be a Florida or Virginia resident, according to Attorney General Racine.

In this lawsuit, OAG could recover more than $100 million in unpaid income taxes and penalties from Saylor and MicroStrategy.

Michael Saylor and Microstrategy responded to the DC Attorney General’s lawsuit

Responding to the allegations against him, Saylor told Virginia Business: “Ten years ago, I bought a historic home in Miami Beach and moved my home from Virginia. Although MicroStrategy is based in Virginia, Florida is where I live, vote and report for judicial work, and it is the center of my personal and family life. He explained.

I respectfully disagree with the District of Columbia’s position and look forward to a fair decision in the courts.

Microstrategy told the publication: “The matter is a personal tax matter involving Mr Saylor. The company was not responsible for the day-to-day affairs and does not control the individual’s tax responsibilities. Also, the company did not align with Mr. Saylor in meeting his personal tax obligations. The District of Columbia’s claims against the company are false and we will vigorously defend against this attack.

Saylor, a vocal bitcoin proponent, stepped down as CEO of MicroStrategy last month to focus on the company’s bitcoin strategy. The software company currently owns 129,699 BTC, at an average purchase price of $30,664 per bitcoin, net of fees and expenses.

What do you think of the tax fraud lawsuit filed by the District of Columbia against Michael Saylor and his company for more than $100 million? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, discovered Bitcoin in 2011 and has been an evangelist ever since. His interests are in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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