Michael Saylor, co-founder and Executive Chairman of MicroStrategy Inc., is being sued for tax fraud by the District of Washington, DC. The lawsuit alleges that Saylor failed to pay income taxes totaling more than $25 million even though he has lived in the area for over a decade. Saylor is perhaps best known as the largest corporate buyer of Bitcoin.
The action, which was filed in the civil division of the District of Columbia Superior Court, alleges that Saylor has been evading taxes since 2005 by falsely declaring his residency in states with lower tax rates, such as Virginia and Florida. It is said that Saylor resided in a luxurious apartment on the Georgetown waterfront and had a number of boats anchored along the Potomac riverbank in the area.
District Says Saylor Fraudulently Claimed Other Residencies
On Wednesday, the lawsuit was announced on Twitter by the Attorney General of the District of Columbia, Karl Racine.
“I respectfully disagree with the position of the District of Columbia, and look forward to a fair resolution in the courts,” Saylor said.
He also stated that he moved to Miami Beach from Virginia a decade ago after purchasing a historic house there.
Although MicroStrategy is headquartered in Virginia, he also noted that his “personal and family life” revolves around Florida.
MicroStrategy, a software firm situated in Tysons Corner, Virginia, is also being sued by DC on charges of conspiring to aid DC’s tax evasion. Until only recently this month, Saylor served as CEO of MicroStrategy.
Further, MicroStrategy issued a statement saying, “The District of Columbia’s claims against the company are false and we will defend aggressively against this overreach,”
According to the lawsuit, MicroStrategy was aware that Saylor spent more than half of the year living in DC, which, according to the regulations of the District, would qualify him as a legal resident of the city. Notwithstanding, the corporation is said to have used his Florida address on erroneous tax filings, and the complaint claims that they failed to deduct and send taxes to the DC.
The District’s action stems from a whistleblower who, in April of 2021, filed a sealed complaint under the False Claims Act in the DC.
Based on the complaint filed by the whistleblower, Saylor demonstrated his loathing for the rules that everyone else is required to live by publicly parading his billionaire lifestyle while boasting to his friends and associates about how he was sidestepping District taxes.
On Wednesday, the price of a share of MicroStrategy declined 3.6%, reaching $231.56. The price of the shares has decreased by around 57% so far this year, reflecting the price reduction of Bitcoin.
