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D.C. Attorney General Karl A. Racine sued MicroStrategy and its founder and Executive Chairman Michael Saylor for tax fraud. Racine tweeted about the case, using it as an example for local business owners and citizens who don't want to pay their taxes. https://twitter.com/AGKarlRacine/status/1565031380471382019
D.C. Income Taxes
According to Attorney General Racine, Saylor has resided in the D.C. district for more than ten years. He "has never paid any D.C. income taxes," nevertheless. He notes that MicroStrategy is also a party to the litigation. Racine asserts that the business aids Saylor in avoiding hundreds of millions of dollars worth of legal tax obligations. The False Claims Act of D.C., recently revised, has become the subject of its first litigation. It incites informants to bring to light citizens who violate tax regulations by listing false addresses as their primary residences.
No Comments From MicroStrategy
On the latest complaint, MicroStrategy has not yet made any comments. As of Wednesday morning, when the business convened its quarterly executive partner summit, neither Michael Saylor nor the corporation had responded to Attorney General Racine's complaint in the media. MicroStrategy is presently trading at $225.96, down $14.26 or 5.94% for the day. The effect of the litigation on their stock price is yet to be determined. The revelation may cause a sharp decline in the price of MicroStrategy as soon as this weekend. Saylor and two other MicroStrategy executives were previously charged with fraud by the U.S. Securities and Exchange Commission (SEC) in 2000 for allegedly declaring profits when the company was losing money. Saylor agreed to pay the shareholders US$8.3 million in addition to a US$350,000 fine to the SEC to resolve the civil accusations without admitting or denying them.