In a historic turn of events, the district has reached the largest ever settlement for income tax fraud. Michael Saylor, a prominent billionaire and advocate of Bitcoin, as well as the founder of software company MicroStrategy, has found himself at the center of accusations regarding his attempt to evade paying more than $25 million in taxes.
After intense negotiations, Saylor and the District of Columbia have agreed on an unprecedented settlement amount of $40 million. This settlement not only resolves the claims of tax fraud but also marks a significant milestone in the district’s history, as it is the largest recovery for income tax fraud to date.
This case also holds the distinction of being the first to be settled under the district’s revised False Claims Act, which encourages whistleblowers to come forward and expose instances of tax cheating.
The allegations against Saylor and MicroStrategy span from 2005 to 2020, with the attorney general asserting that they engaged in deceptive tax reporting tactics during this period. By falsifying documents to suggest that Saylor resided in states with lower income tax rates, such as Florida or Virginia, they aimed to evade higher tax liabilities in the nation’s capital.
However, the lawsuit argues that MicroStrategy was well aware of Saylor’s true residence, as the company provided him with security details and drivers. Attorney General Brian L. Schwalb stated that MicroStrategy and its CEO had been taking advantage of the district and its residents for an extended period, according to The New York Times.
The district’s case was further supported by evidence of Saylor’s ownership of lavish properties in Georgetown, Washington, D.C. Additionally, he invested millions into renovating three condos he purchased in the region between 2006 and 2008.
During the same time, Saylor was frequently seen enjoying his penthouse residence and spending considerable time on his yachts moored in the picturesque Potomac River. The way he utilized social media also played a significant role in the case.
In other news related to the cryptocurrency industry, the team behind Shiba Inu (SHIB) has issued a warning to investors about the increasing threat of scams. It is crucial for individuals to exercise caution and be vigilant when engaging in cryptocurrency transactions to protect themselves from potential fraudulent schemes.