Saha Swatilakha
Michael Saylor, the executive chairman and co-founder of MicroStrategy, has agreed to a $40 million settlement in an income tax fraud case with the District of Columbia. This settlement, the largest of its kind in D.C. history, was announced by Attorney General Brian Schwalb on Monday.
The case against Saylor and MicroStrategy, filed in August 2022, accused Saylor of evading more than $25 million in D.C. taxes by misrepresenting his residence. While Saylor claimed residency in Florida or Virginia, the D.C. government alleged he lived within the U.S. capital’s jurisdiction to benefit from lower tax rates. The lawsuit also implicated MicroStrategy in aiding the concealment of Saylor’s true residency for tax purposes.
Despite agreeing to the settlement, Saylor continues to deny the allegations. “Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia,” Saylor told The New York Times, which first reported the settlement. “I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.”
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Attorney General Schwalb emphasized the significance of the settlement, noting it as the largest income tax fraud recovery in D.C. history. The case primarily focused on Saylor’s residency and tax filings from 2005 to 2021. While Saylor insisted he lived in Florida, D.C. attorneys argued he resided in a luxury apartment and on yachts within the district’s jurisdiction.
Both Saylor and MicroStrategy have denied any wrongdoing per the terms of the settlement. The resolution of this high-profile case underscores the District of Columbia’s commitment to enforcing tax laws and ensuring that all residents and entities comply with their tax obligations.
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SAHA
Saha is a cryptocurrency journalist specializing in blockchain technology and digital finance.
