Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Investing

Sotheby’s settles New York tax fraud case, pays damages

By Jonathan Stempel

NEW YORK (Reuters) -Sotheby’s will pay $6.25 million and adopt reforms to settle New York Attorney General Letitia James’ lawsuit accusing the famed auction house of fraudulently helping clients avoid sales taxes on tens of millions of dollars of art purchases.

Thursday’s settlement resolves claims that Sotheby’s let at least eight clients cheat New York state from 2010 to 2020 by using “resale certificates” that falsely portrayed them as art dealers entitled to tax exemptions, instead of art collectors.

James said Sotheby’s accepted certificates from one client, a contemporary art enthusiast, who spent more than $27 million on works by artists like painter Jean-Michel Basquiat and sculptor Anish Kapoor, despite knowing he was a collector.

She said some employees even helped the unnamed client display works at his home, or admired them on the walls. The $6.25 million includes damages, penalties and legal costs.

“Sotheby’s intentionally broke the law,” James said in a statement. “Every person and company in New York knows they are required to pay taxes, and when people break the rules, we all lose out.”

The New York-based auction house did not admit or deny wrongdoing, and said it settled to avoid the time, expense and distraction of litigation.

Sotheby’s reforms include a new policy on resale certificates and improved employee training to determine whether art purchasers are planning resales.

James had sued Sotheby’s in November 2020, seeking damages and civil penalties for violating the state’s False Claims Act.

The unnamed client’s company, Porsal Equities, had agreed in 2018 to pay $10.75 million to resolve related New York claims over its use of resale certificates.

In a statement, Sotheby’s said it “remains committed to full compliance with all applicable law.” It also said it provided much of the evidence that led to the Porsal settlement.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com