Crypto billionaire and MicroStrategy chair Michael Saylor is being sued by the DC attorney general on charges of tax evasion.
Washington Or Florida – Where Does Saylor Live?
District of Columbia Attorney General Karl Racine has accused tech billionaire Michael Saylor of evading taxes worth $25 million. The lawsuit is seeking to recover unpaid taxes and penalties in the range of $100 million from the defendants. The lawsuit alleged that he had been living in several different homes across D.C. while claiming to reside in Virginia or Florida, which do not have lower rates or zero personal income tax.
The case against Saylor is being enforced under the recently updated False Claims Act that holds people accountable regarding matters of tax fraud. The lawsuit has presented evidence from Saylor’s social media pages, where he has posted pictures of his “home” while tagging Washington. Some of these residences include a penthouse apartment in Georgetown and a yacht on the Georgetown waterfront or the Potomac river.
Commenting on the matter, AG Racine 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.”
MicroStrategy Also Named In Lawsuit
The AG has filed charges against Saylor as well as his company MicroStrategy, claiming that the latter conspired to help Saylor evade his taxes. Allegedly, the business analytics company had information confirming that Saylor was a D.C. resident, which it chose to withhold.
The lawsuit claims,
“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.”
According to the information in the lawsuit, Saylor was confronted about his alleged tax evasion in 2014 by the company’s then CFO. Following the discussion between the two, Saylor’s salary was reduced to a nominal $1, as alleged by the lawsuit. The lawsuit also claims that Saylor has continued reaping fringe benefits like using the company plane for his personal travels.
Saylor’s Bitcoin Bid
Saylor had been instrumental in his company’s move into the crypto space and under his leadership, the company spent a total of $4 billion to stock up Bitcoin at around $30K. Earlier this month, he stepped down as CEO and assumed the position of Chairman in order to focus on the company’s strategy and Bitcoin efforts.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
