News
11/21/24 | Articles and TV
Partner Randall Fox Discusses Sotheby’s NY FCA Settlement in Tax Notes
NEW YORK -- KM Partner Randall Fox was quoted by Tax Notes on November 21 in an article discussing Sotheby’s recently announced $6.25 million settlement with the Office of New York Attorney General Letitia James resolving charges that the auction house helped clients to dodge millions of dollars in taxes.
Mr. Fox applauded the work of the New York AG, saying that it was “good to see a long-running case brought to its conclusion.” He noted that the agreement will "make it exceedingly difficult for Sotheby’s to lie about resale certificates in the future.” Furthermore, Mr. Fox underscored that while False Claims Act cases are typically brought by whistleblowers, this one was brought by the Attorney General’s Office. He believes that this will signal to other auction houses that might facilitate or engage in tax fraud that “the chances of getting caught are extremely high, and that they shouldn’t do it.”
Under the New York False Claims Act, the government and Whistleblowers can file lawsuits to recover three times the state and local taxes that were lost to the government due to false tax returns and other tax frauds. When whistleblowers bring successful actions, they can receive between 15 and 30% of the recoveries.
The full article can be found on Tax Notes’ website.
Mr. Fox applauded the work of the New York AG, saying that it was “good to see a long-running case brought to its conclusion.” He noted that the agreement will "make it exceedingly difficult for Sotheby’s to lie about resale certificates in the future.” Furthermore, Mr. Fox underscored that while False Claims Act cases are typically brought by whistleblowers, this one was brought by the Attorney General’s Office. He believes that this will signal to other auction houses that might facilitate or engage in tax fraud that “the chances of getting caught are extremely high, and that they shouldn’t do it.”
Under the New York False Claims Act, the government and Whistleblowers can file lawsuits to recover three times the state and local taxes that were lost to the government due to false tax returns and other tax frauds. When whistleblowers bring successful actions, they can receive between 15 and 30% of the recoveries.
The full article can be found on Tax Notes’ website.
Subscribe
Related Team Members
