The Office of the Attorney General for the District of Columbia in the United States is moving forward on a lawsuit against business intelligence firm MicroStrategy executive chair Michael Saylor related to tax evasion.
According to a Feb. 28 filing with the U.S. Securities and Exchange Commission, MicroStrategy said the court had not dismissed a claim against Saylor for failing “to pay personal income taxes, interest and penalties due” following an October 2022 motion from the firm. However, the court granted a motion dismissing allegations that Saylor — on his own and acting in concert with MicroStrategy — violated the District of Columbia’s False Claims Act.
Former D.C. Attorney General Karl Racine announced a lawsuit against Saylor and MicroStrategy in August 2022, alleging the co-founder “never paid any DC income taxes” and the company “conspired” to assist him in tax evasion. At the time, authorities said Saylor owed more than $25 million in taxes for income earned while he was a D.C. resident, but penalties from both the former chief executive officer and MicroStrategy could total more than $100 million.
It's the 1st lawsuit brought under DC’s recently amended False Claims Act encouraging whistleblowers to report residents who evade our tax laws by misrepresenting their residence. Led by @ChmnMendelson, @councilofdc unanimously updated the law & gave us enforcement authority.
Racine left the Attorney General’s office in January after announcing he would not seek re-election. According to the MicroStrategy filing, there will be a “status conference” on the lawsuit on March 10.
“The final outcome of this matter is not presently determinable,” said the filing.
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