The DC attorney general is suing cryptocurrency billionaire and MicroStrategy CEO Michael Saylor on suspicion of tax evasion.
Michael Saylor, a billionaire in the technology industry, is charged by District of Columbia Attorney General Karl Racine with avoiding $25 million in taxes. The defendants are being sued to recoup unpaid taxes and penalties in the neighborhood of $100 million. He was allegedly living in several various residences throughout Washington, D.C. while claiming to be a resident of Virginia or Florida, states that do not have reduced rates or no personal income tax.
The False Claims Act, which was recently modified to hold persons accountable for tax fraud, is being used to enforce the case against Saylor. Saylor shared images of his “house” on social media and tagged Washington in them, which the lawsuit used as proof. Some of these homes are penthouse apartments in Georgetown and yachts docked on the Potomac or Georgetown waterfronts.
AG Racine commented on the situation and said,
“D.C. residents and their employers are now on notice that attempts to evade the District’s income tax laws by falsely claiming that they reside in another jurisdiction will be investigated and, if substantiated, held accountable.”
Saylor and his firm MicroStrategy have both been charged by the AG on suspicion of conspiring to assist Saylor in evading taxes. The business analytics firm allegedly possessed proof that Saylor lived in Washington, D.C., but opted to hide it.
The lawsuit asserts,
“OAG also alleges that MicroStrategy had detailed information confirming that Saylor was, in fact, a DC resident, but instead of accurately reporting his address to local and federal tax authorities and withholding DC taxes, collaborated with Saylor to facilitate his tax evasion.”
The company’s then-CFO allegedly questioned Saylor about his suspected tax avoidance in 2014, according to material in the lawsuit. According to the lawsuit, after the two had their conversation, Saylor’s pay was decreased to a meager $1. According to the lawsuit, Saylor has continued to enjoy perks including using the firm’s plane for his trips.
Saylor had a key role in his business’s decision to enter the cryptocurrency market, and under his direction, the corporate entity spent a total of $4 billion to buy up Bitcoin at $30,000. He took on the role of chairman earlier this month after resigning as CEO to concentrate on the business’s strategy and Bitcoin initiatives.
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