Court Dismisses Tax Fraud Charges Against Michael Saylor’s MicroStrategy

The Superior Court of the District of Columbia has dismissed a civil complaint against American business intelligence company MicroStrategy, which alleged that the firm helped its co-founder Michael Saylor evade income tax payments.

According to a recent filing, Saylor and MicroStrategy filed a motion to dismiss the complaint in October, and the court ruled in favor of the request on February 28.

Court Dismisses Civil Complaint Against MicroStrategy

Recall that in August, the Washington District of Columbia, through its Attorney General’s office, sued Saylor for evading income taxes for more than ten years and MicroStrategy for helping the Bitcoin proponent in the act.

CryptoPotato reported that the case, which was the first under DC’s just amended False Claims Act, sought payments of up to $25 million in income taxes owed and undisclosed amounts in treble damages, civil penalties, and other reliefs.

Saylor was accused of claiming to live in Florida – a state void of income taxes – but residing in DC. The complaint alleged that he secured a driver’s license and registered to vote in Florida to pose as a resident there. Meanwhile, the former CEO maintained his DC residence for at least 183 days in taxable years.

The publicly-traded company was accused of knowing about Saylor’s false claims as a Florida resident and helping him substantiate them.

Saylor to Go to Trial Next Week

After the lawsuit was filed, Saylor and his company filed a motion requesting that the court dismiss both complaints against them. The court has now ruled to quash the charges against MicroStrategy.

The court also noted that charges against Saylor were not dismissed, and the former CEO is scheduled to go to trial on March 10.

“The court did not dismiss claims against Mr. Saylor alleging that Mr. Saylor failed to pay personal income taxes, interest, and penalties due. A status conference in the case is scheduled for March 10, 2023. The final outcome of this matter is not presently determinable,” the filing stated.