Bitcoin investor and founder of software company MicroStrategy Michael Saylor are being sued for alleged tax fraud, according to a complaint filed by the United States D.C. Attorney General Karl Racine. The billionaire has been living in this state for around ten years, the government official said but has allegedly failed to meet tax obligations.
The D.C. Attorney will also file for legal action against Saylor’s company MicroStrategy. The government official claims the company was used to help Saylor allegedly evade taxes while making “hundreds of millions of dollars he’s earned while living in DC”, Racine said via his official Twitter handle.
The government official added:
It’s the 1st lawsuit brought under DC’s recently amended False Claims Act encouraging whistleblowers to report residents who evade our tax laws by misrepresenting their residence (…). With this lawsuit, we’re putting residents and employers on notice that if you enjoy all the benefits of living in our great city while refusing to pay your fair share in taxes, we will hold you accountable.
According to the complaint, Saylor owns the District of Columbia “tens of millions of dollars in tax revenue”. The document claims that the executive was “fraudulently claiming to be a resident” of Florida while “maintaining his domicile and place of abode in” DC.
The complaints claim Saylor owns a “luxury penthouse on the Georgetown waterfront” and own “multiple yachts”. This unreported tax activity allegedly took place for over 20 years. The document claims:
The District brings this action under the False Claims Act and the District’s tax laws to hold Defendants Saylor and MicroStrategy accountable for Saylor’s obligation to pay District income taxes. The District seeks payment for the back taxes owed, penalties, interest, treble damages, and all other remedies available under the law.
Bitcoin Investment Got Michael Saylor In Trouble?
Furthermore, the document claims that Michael Saylor failed to file a tax report on any investment made since 2005. This includes his Bitcoin purchase in 2020 which allegedly made him over $1 billion in profits.
In addition, Michael Saylor has apparently said that Bitcoin is an “ideal tool for evading taxes”, the document claims while adding:
Saylor or MicroStrategy is yet to comment on the lawsuit. The executive is highly active on social media platforms, as news about the complaint went public, Saylor has just tweeted about Bitcoin’s power to secure people’s wealth “so you don’t have to trust your money to anyone”.