In a landmark settlement, billionaire Michael Saylor and his company MicroStrategy have agreed to pay $40 million to the District of Columbia. This agreement comes after allegations that Saylor had evaded paying income taxes while claiming residency outside of D.C.
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Background of the Case
The District of Columbia sued Saylor in 2022, accusing him of failing to pay income taxes while living in the district. The attorney general’s office alleged that Saylor owed over $25 million in income taxes between 2005 and 2020. Whistleblowers claimed that Saylor had “openly bragged to friends and acquaintances about evading D.C. taxes,” which involved MicroStrategy issuing false statements on his W-2s.
Details of the Settlement
Saylor, who has denied the accusations, maintains that his residence was in Florida and disputes ever being a resident of D.C. Despite his stance, he has chosen to settle to avoid further litigation burdens on himself and his associates. This settlement is significant as it marks the largest income tax fraud recovery in the city’s history, Axios report.
Implications of the Settlement
The settlement sends a strong message that no individual, regardless of their wealth or status, is above the law. D.C. Attorney General Brian Schwalb stated, “This precedent-setting settlement makes clear that no one in the District of Columbia, no matter how wealthy or powerful they may be, is above the law.”
Saylor’s and MicroStrategy’s Position
Saylor stepped down as CEO of MicroStrategy in 2022 but continues to serve as Chairman. He and MicroStrategy did not admit to any wrongdoing or violations of the law as part of the settlement. MicroStrategy’s statement clarified that this was a personal tax matter involving Mr. Saylor.
References:
https://finance.yahoo.com/news/crypto-billionaire-michael-saylor-pays-152329068