Bitcoin

The District of Columbia has reached a historic $40 million settlement with billionaire Bitcoin investor Michael Saylor and <a href="https://coingape.com/breaking-microstrategy-bitcoin-holdings-exceed-200000-in-latest-acquisition/" target="_blank" rel="noopener">MicroStrategy</a>, the software company he founded. The settlement has been made over allegations of tax fraud. Moreover, the agreement marks the largest income tax fraud recovery in the district’s history. 
<h2 id="microstrategy-michael-saylor-settle-the-tax-evasion-case">MicroStrategy &amp; Michael Saylor Settle The Tax Evasion Case</h2> 
Additionally, this case serves as the first lawsuit settled under the district’s amended False Claims Act, which encourages whistle-blowers to report tax evasion. Michael Saylor, who has been a prominent figure in the crypto world, was accused of evading over $25 million in income taxes. 
Moreover, the lawsuit, filed by the attorney general in 2022, claimed that Saylor and MicroStrategy engaged in fraudulent tax filing practices from 2005 through 2020. The filings falsely stated that Saylor lived in Virginia or Florida—states with significantly lower income tax rates than Washington, D.C. 
According to the lawsuit, MicroStrategy was aware of Saylor’s actual residency due to the company’s provision of security details and drivers for him. “<a href="https://coingape.com/microstrategy-ceo-michael-saylor-celebrates-bitcoin-etf-reserve-surpassing-1m-btc/" target="_blank" rel="noopener">Michael Saylor</a> and his company, MicroStrategy, defrauded the district and all of its residents for years,” said Attorney General Brian L. Schwalb in a statement, according to The New York Times. 
Whilst, evidence supporting the district’s claims included Saylor’s ownership of luxury properties in Georgetown, Washington, D.C. Moreover, between 2006 and 2008, he purchased three condominiums in the area and invested millions in renovations. 
Additionally, MicroStrategy’s Saylor spent considerable time on his yachts anchored in the Potomac River and at another penthouse apartment during these renovations. In addition, his social media activity also played a role in the case. In a post that caused a stir, Saylor stated, “View from my Georgetown balcony this morning. Now I just need to finish renovating the apartment so I can move back in.” 
Also Read:&nbsp;<a href="https://coingape.com/australias-first-bitcoin-etf-starts-trading-tomorrow-heres-all/" target="_blank" rel="noopener">Australia’s First Bitcoin ETF Starts Trading Tomorrow, Here’s All</a> 
<h2 id="saylor-denies-any-wrongdoing">Saylor Denies Any Wrongdoing</h2> 
Despite the settlement, Saylor and MicroStrategy continue to deny any wrongdoing. “Florida remains my home today, and I continue to dispute the allegation that I was ever a resident of the District of Columbia,” Saylor said. The <a href="https://coingape.com/bitcoin-etf-end-the-week-with-15k-btc-inflow-michael-saylor-hails-milestone/" target="_blank" rel="noopener">MicroStrategy founder</a> added, “I have agreed to settle this matter to avoid the continued burdens of the litigation on friends, family, and myself.” 
For context on the matter, the amended False Claims Act, which facilitated this lawsuit, was revised in 2021 to permit cases of tax evasion to be brought forward by whistle-blowers. The original lawsuit against Saylor was filed by a whistle-blower that same year, leading the district to launch its own case in 2022. 
Under the act, a whistle-blower who files a successful claim can receive up to 25 percent of the government’s recovery. Hence, MicroStrategy’s $40 million settlement serves as a landmark case in the enforcement of tax laws and the prosecution of high-profile tax evasion. 
Also Read:&nbsp;<a href="https://coingape.com/markets/will-xrp-price-reach-5-in-2024-if-ripple-wins-sec-lawsuit/" target="_blank" rel="noopener">Will XRP Price Reach $5 In 2024 If Ripple Wins SEC Lawsuit?</a> 
The post <a href="https://coingape.com/microstrategy-michael-saylor-deny-wrongdoing-despite-40m-settlement-in-tax-fraud-case/">MicroStrategy &amp; Michael Saylor Deny Wrongdoing Despite $40M Settlement In Tax Fraud Case</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

MicroStrategy & Michael Saylor Deny Wrongdoing Despite $40M Settlement In Tax Fraud Case

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