D.C. attorney general Karl Racine, via Twitter, faulted Micheal Taylor for tax fraud. He is accused of avoiding up to $25 million and consequently being sued. For the past ten years, the billionaire has refused to pay D.C. income taxes. This offence is not taken lightly by the United States of America.
Saylor allegedly said that he resided in Virginia or Florida, states with lower income tax rates, when in reality he was residing in several properties near Washington, D.C. A feature of the amended law says residents must pay tax if they sustain a house for 183 days or more, even if their permanent home is not in D.C.
Saylor disagrees with the accusation and has asked for a fair appeal. The company of the American entrepreneur and business executive, MicroStrategy, has been found guilty of conspiring with him to avoid taxes and consequently sued; this news has not favoured him or his company; shares have been declining.
MicroStrategy denies any involvement in tax evasion. In an announcement, MicroStrategy said that the billionaire was involved in a “personal tax situation” and that the business did not supervise his tax obligations.
The reaction to the news has been diverse, with some people applauding the effort of the attorney general and some reproaching it.
The action was made possible with the newly amended False Claim Act, or the Lincoln Law. With the amendment, citizens were encouraged to report tax evaders and would be well compensated.
With additional fines, the case’s damages could reach $100 million. D.C. AG Karl Racine further stated that citizens and patrons who are relishing the perks of living in D.C. without paying taxes would soon be held accountable. The goal is to ensure citizens abide by the country’s laws no matter their status in society.