Michael Saylor and the company he founded, MicroStrategy, are facing legal action in Washington, DC for tax fraud, according to an announcement by DC Attorney General Carl Racine. The complaint alleges that Saylor knowingly avoided Washington, DC state income tax and fraudulently claimed to be a resident of a low-tax jurisdiction while maintaining his residence in DC, and that cloud software company MicroStrategy conspired with Saylor by intentionally obscuring him. Correct address to local and federal tax authorities.
in His complaint, the attorney general’s office alleged that Saylor “feuded” that he was a resident of Florida or Virginia in order to take advantage of significantly lower tax rates. However, his Facebook posts included in the complaint prove that he maintains his residence in Washington, DC.
NEW: Today, we’re suing Michael Saylor — a billionaire tech executive who’s lived in the District for more than a decade but never filed DC income taxes — for tax fraud.
— AG Carl A. Racine (@AGKarlRacine) 31 August 2022
The billionaire bragged to his confidants about masquerading as a Florida resident to avoid paying taxes in the District of Columbia. He registered to vote in Florida and obtained a driver’s license there without leaving the district as his domicile.
This is the first lawsuit brought under DC’s recently revised False Claims Act that encourages whistleblowers to report residents who violate our tax laws by misrepresenting their residence. Leadership @ChmnMendelson, @councilofdc Consensus updated the law and gave us enforcement powers.
— AG Carl A. Racine (@AGKarlRacine) 31 August 2022
This is the first case brought under the district’s recently passed false claims law. Racy tweetedthe office is looking to recover over $100 million (roughly Rs. 798 crore) in unpaid income tax and penalties from Saylor and MicroStrategy.
MicroStrategy holds the most bitcoins among public companies – holding 1,29,699 BTC as of June 30, worth around $2.6 billion (roughly Rs. 20,765 crore). Saylor, meanwhile, is also a known vocal supporter of the industry.
The development comes after Saylor stepped aside as MicroStrategy’s CEO in early August, but remains chairman of the board; He also took on a solid executive position focusing on “Bitcoin acquisition strategy and related Bitcoin advocacy initiatives.”
