This settlement is the biggest recovery for income tax fraud in the history of the district.
Saylor faced accusations of trying to avoid paying more than $25 million in taxes.
Michael Saylor, a billionaire Bitcoin advocate and founder of software company MicroStrategy, and the District of Columbia have negotiated an unprecedented $40 million settlement. Claims of tax fraud led to the settlement. In addition, this settlement is the biggest recovery for income tax fraud in the history of the district.
The district’s revised False Claims Act, which incentivizes whistleblowers to expose tax cheating, was also used in this case, making it the first to be settled in this manner. Michael Saylor, a major player in the cryptocurrency industry, faced accusations of trying to avoid paying more than $25 million in taxes.
Tax Evasion Charges
In addition, from 2005 to 2020, the attorney general asserted in the case that Saylor and MicroStrategy participated in deceitful tax reporting tactics. The documents made it appear as though Saylor resided in Florida or Virginia, two states with far lower income tax rates compared to the nation’s capital.
The lawsuit claims that because MicroStrategy provided Saylor with security details and drivers, the business knew Saylor’s real residence. In a statement, Attorney General Brian L. Schwalb alleged that MicroStrategy and its CEO, Michael Saylor, had bilked the district and its residents for a long time as per The New York Time.
The district’s assertions were supported by evidence that Saylor owned luxurious houses in Georgetown, Washington, D.C. In addition, he spent millions renovating three condos he bought in the region between 2006 and 2008.
At the same time as he was renovating his penthouse residence, MicroStrategy’s Saylor spent a lot of time on his yachts anchored in the Potomac River. The way he used social media was also relevant to the case.
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