Michael Saylor accused of $25 million tax evasion

The District of Columbia (USA) has filed suit against MicroStrategy and its executive chairman Michael Saylor. The prosecutor accuses them of fraud designed to evade taxes.

“Saylor deliberately evaded taxes he owed to the district. He fraudulently presented himself as a resident of jurisdictions with lower tax rates, while living in the area since 2005.”

The indictment puts the amount at $25 million. According to the complaint, Saylor lived in Georgetown but masked himself as a resident of Florida or Virginia — he bought property and registered to vote in those states.

The document states that the MicroStrategy founder resided in Colombia for at least 183 days a year. That is enough to establish tax residency.

According to District Attorney Karl Racine, MicroStrategy “aided” its founder in evading taxes. In filings with the IRS, the company indicated that Saylor lives in Florida.

We’re also suing his company, MicroStrategy, for conspiring to help him evade taxes he legally owes on hundreds of millions of dollars he’s earned while living in DC.

— AG Karl A. Racine (@AGKarlRacine) August 31, 2022

The suit was filed under the False Claims Act. According to Racine, the Act “encourages whistleblowers to report residents who evade taxes.”

In an interview with Bloomberg, Saylor stressed that he does not agree with the charges:

“I respectfully disagree with the District of Columbia’s position and I hope for a fair resolution in court.”

MicroStrategy dismissed the allegations as baseless. A company spokesperson said it would vigorously defend its interests.

Back in August 2022, Saylor stepped down as MicroStrategy’s CEO to focus on “innovation and a long-term corporate strategy”, which envisages further purchases and retention of bitcoin.

Lawsuit by ForkLog on Scribd

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