According to a report by CNBC, the Washington, D.C. Office of the Attorney General announced on Monday (3rd) that the U.S. publicly listed company MicroStrategy, which holds a large amount of Bitcoin, and its founder Michael Saylor have agreed to pay 40 million dollars to settle a tax fraud lawsuit.
Attorney General Brian Schwalb alleged in a civil complaint filed in 2023 that Saylor, from 2005 to 2021, falsely claimed to be a resident of low-tax states such as Florida and Virginia to evade over 25 million dollars in Washington D.C. income taxes, while his actual residence was a luxury penthouse in Washington.
The Washington D.C. Attorney General accused Saylor and MicroStrategy of tax evasion, claiming that the company helped its founder conceal his residency in Washington D.C., thereby avoiding higher income taxes. It is alleged that MicroStrategy also did not pay the required corporate taxes for employing residents of Washington D.C., with Saylor being just one of them.
According to The New York Times, Saylor has disputed these allegations, stating: