DC sues Michael Saylor, the Co-Founder of MicroStrategy for failing to pay income taxes

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Last Updated on September 1, 2022 by Bitfinsider

Washington, D.C. is suing MicroStrategy Inc. co-founder and Executive Chairman Michael Saylor for tax fraud, claiming that he failed to pay more than $25 million in income taxes after having lived in the district for more than ten years. Saylor is perhaps best known as the largest corporate buyer of Bitcoin.

Saylor allegedly illegally claimed to be a resident of other, lower-tax jurisdictions, such as Virginia and Florida, in order to avoid paying taxes that is long due since 2005. According to the case, which was filed with the D.C. Superior Court’s civil division, it asserts that Saylor kept a number of yachts berthed on the Potomac riverside in Georgetown and resided in a lavish apartment there.

On Wednesday, D.C. Attorney General Karl Racine tweeted about the case.

Source: Twitter

Saylor said: “I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts,” and further added that “Although MicroStrategy is based in Virginia, Florida is where I live, vote, and have reported for jury duty, and it is at the center of my personal and family life.”

D.C. is also suing the business for allegedly colluding to assist him in evading taxes. Saylor led MicroStrategy as CEO up until this month.

In response, MicroStrategy said in a statement: “The District of Columbia’s claims against the company are false and we will defend aggressively against this overreach.”

According to the lawsuit, MicroStrategy knew that Saylor spent more than half the year living in Washington, D.C., making him a resident there legally. Nevertheless, the lawsuit claims that the corporation neglected to withhold and send D.C. taxes and that it filed incorrect tax returns with his Florida address.

The district’s case began with a whistleblower who, in accordance with the False Claims Act of Washington, D.C., filed a complaint in April 2021 under seal. “Demonstrating his disdain for the rules that everyone else has to live by, Saylor publicly flaunted his billionaire lifestyle while bragging to his friends and associates about how he was evading District taxes,” as reported by the whistleblower.

On Wednesday, MicroStrategy stock dropped 3.6% to $231.56. The stock’s loss this year has been similar to that of Bitcoin’s, falling around 57%.


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Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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