MicroStrategy, Michael Saylor Sued For Tax Fraud

DC Attorney General Karl A. Racine announced August 31 that he is filing civil charges against cloud software company MicroStrategy and its president Michael Saylor for years of tax fraud.

Racine announced the lawsuit against MicroStrategy and Michael Saylor on her official Twitter account, citing it as an example for residents and employers in the area refusing to pay their taxes.

MicroStrategy, which holds the largest Bitcoin treasury among public companies, has helped Saylor “evade taxes he legally owes on hundreds of millions of dollars he’s earned while living in DC,” Racine tweeted.

“a billionaire tech executive who has lived in the District for more than a decade, but has never paid any DC income taxes.”

He said

According to a press release from Racine’s office, Saylor is accused of using an “elaborate scheme” to avoid paying income taxes in DC between the years 2014 and 2020. Saylor allegedly claimed that he was a Florida resident – a state without income taxes – but was actually present in DC most of the year, and openly bragged about the scheme.

Following a whistleblower lawsuit, Racine’s office investigated allegations and found that Saylor avoided paying more than $25 million worth of DC income taxes. Racine believes that MicroStrategy conspired to enable the scheme, including filing false W-2 statements with his Florida residence listed.

Between unpaid taxes and penalties, Racine estimates that Saylor and MicroStrategy could be on the hook for more than $100 million.

This is the first lawsuit brought under DC’s recently amended False Claims Act. It encourages whistleblowers to report residents who evade tax laws by misrepresenting their residences.

Microstrategy has yet to comment on the new lawsuit.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

CoinCu News