MicroStrategy co-founder Michael Saylor has agreed to pay $40 million to resolve a tax evasion lawsuit filed by the District of Columbia. This marks the largest income tax fraud recovery in D.C. history, according to Attorney General Brian Schwalb.
The lawsuit, filed in August 2022, alleged that Saylor, while residing in D.C. for over a decade, misrepresented his primary residence as Florida or Virginia to avoid paying income taxes in the nation’s capital. D.C. boasts higher tax rates compared to the aforementioned states. The suit further claimed that MicroStrategy assisted Saylor in concealing his residency for tax purposes.
“No one is above the law,” declared D.C. AG Brian Schwalb. “Saylor not only broke the law, but also bragged about it and encouraged others to follow suit. Tax evasion deprives the District of critical resources for essential services.”
Despite the settlement, Saylor maintains his innocence. “Florida remains my home,” he told the New York Times. “I dispute the D.C. residency claims but settled to avoid further litigation burdens.”
MicroStrategy distanced itself from the case, stating it was a “personal tax matter” for Saylor and that the company played no role in his tax affairs.
Interestingly, MicroStrategy’s stock price rose by 4.3% in pre-market trading following the settlement news.
This case highlights the ongoing scrutiny of high-profile figures over (tax) residency and underlines the potential consequences for those who attempt to evade their tax obligations.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
About The Author
