MicroStrategy CEO Under Radar of Washington DC. AG
Michael Saylor (a billionaire and CEO of MicroStrategy) as well as his firm have been sued by Karl Racine (the Attorney General of Washington, D.C.) for being accused of tax fraud. The respective legal case was filed on Wednesday in which it has been claimed that the alleged billionaire has resided in the city for over a decade but did not ever recompense any income taxes to the authorities of Washington, D.C.
Michael Saylor Accused by DC Attorney for Evading $25M in Taxes
The attorney general is suing Saylor to recapture the liability of the defendant for the income tax he owes to the authorities. In addition to this, the lawsuit aims to put high civil penalties and compel him to pay a considerable amount in damages for the accused tax scheme. As per the allegation of Racine, MicroStrategy has conspired to assist Saylor in evading taxes of nearly $25M worth.
MicroStrategy operates as a software as well as a business intelligence firm. Under the leadership of Saylor, the platform bought approximately $4B worth of Bitcoin (BTC) formerly this month. The estimated net worth in the possession of Saylor was nearly $1.6B recent April, as per Forbes. To stay away from the taxes within Washington, the defendant asserted that he lived external to the district, in states like Virginia and Florida, as mentioned in the lawsuit.
Karl Racine Accuses MicroStrategy to Have Assisted Its CEO in Tax Evasion
Nonetheless, an apartment has been kept by him in Georgetown. Additionally, a yacht had also been under his possession on the Potomac River at the time targeted by the prosecutor in the suit. Several photos and posts of Saylor’s Washington-based apartment shared on social media accounts of the defendant were referred to in the lawsuit. Karl Racine moved on to accuse that elaborated information validating the D.C.-based citizenship of Saylor had been possessed by MicroStrategy.
Nevertheless, he added, they did not precisely report this to the federal and local tax authorities. Rather, the company assisted its founder to evade the respective taxes, as mentioned in a press release issued from the office of the attorney general. This lawsuit is witnessed after Saylor was sued by the whistleblowers, asserting that he remained unsuccessful in fulfilling the tax obligations thereof during 2014 and 2020, as per the press release. That lawsuit was submitted under the False Claims Act of Washington.
