Karl Racine, the Washington, D.C. Attorney General, announced Wednesday that the Office of the Attorney General (OAG) has filed civil charges against Bitcoin proponent Michael Saylor and his company MicroStrategy for failing to pay income taxes.
The tech billionaire allegedly avoided tax payments of more than $25 million by pretending to be living in a different district with lower income taxes than D.C.
Michael Saylor Violates D.C. Tax Law
The U.S. Attorney’s Office noted that the defendant has lived in the jurisdiction for over a decade without paying any income taxes as required by the District law. The District’s ruling states that residents who own properties and homes for at least 183 days in the region are mandated to report income taxes and comply with the authorities.
The defendant, however, failed to comply with the rule by pretending to live in Florida, a state without income taxes, while spending most of his time in D.C.
OAG alleged that he provided false information to local and federal tax authorities, misrepresenting his home and avoiding D.C. tax charges.
The suit also claims that Saylor publicly referred to the District’s Georgetown area as a home since 2005, noting that he lives in a 7000-square feet penthouse on the Georgetown waterfront. He also owns other luxurious properties, including two yachts.
MicroStrategy Sued for Conspiracy
Attorney Racine also stated that the OAG is suing Saylor’s business intelligence company MicroStrategy for allegedly conspiring with its founder to “evade taxes he legally owes on hundreds of millions of dollars he’s earned while living in D.C.”
According to OAG, the firm has detailed information confirming that Saylor was a D.C. resident.
The court also noted that the lawsuit is the first suit brought under the District’s recently passed False Claims Act (FCA).
The new law allows the court to punish tax offenders by imposing “treble damages,” three times the amount of tax evaded. The newly updated FCA also encourages whistleblowers to report suspected tax evaders misrepresenting their D.C. residents.
“D.C. residents and their employers are now on notice that attempts to evade the District’s income tax laws by falsely claiming that they reside in another jurisdiction will be investigated and, if substantiated, held accountable,” said AG Racine.
Source: https://coinfomania.com/u-s-charges-michael-saylor-25m-tax-evasion/