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  (Source: fortunebrainstormtech.files.wordpress.com)
Sprint plans to file an appeal

Sprint is in hot water due to unpaid sales taxes, and the carrier is looking at a $300 million lawsuit. 

A lawsuit,  which claimed that Sprint didn't collect or pay taxes properly on wireless calling plans, was filed in New York back in 2011. This cost both local and state governments over $100 million. 

More specifically, wireless carriers are supposed to collect and pay sales taxes on the entire charge for the amount of minutes they sell for fixed monthly wireless plans. Instead of doing this, Sprint dubbed a portion of it as nontaxable and failed to collect about 25 percent of the taxes due to governments. 

New York Attorney General Eric Schneiderman took over the case last year, and now wants $300 million to cover the $100 million lost by state/local governments and for penalties. He said this should be a warning to others that tax fraud will be punished in the state.

“Sprint is disappointed in the court’s decision, and we intend to file an appeal shortly,” said John Taylor, a spokesman for Sprint. “With this lawsuit, the Attorney General’s office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. As we have in the past, we will continue to stand up for New York consumers’ rights and fight this suit.”

New York Supreme Court Judge O. Peter Sherwood denied Sprint's request to dismiss the case on June 27. Another hearing is scheduled for July 24.

Sources: Bloomberg, CNET



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By marvdmartian on 7/3/2013 8:10:02 AM , Rating: 2
quote:
New York Attorney General Eric Schneiderman took over the case last year, and now wants $300 million to cover the $100 million lost by state/local governments and for penalties.

Typical NY, always seeking to take advantage of a situation, to get more than they deserve!

Back when I was in the military, I got to enjoy a vacation from NY state taxes, so long as I didn't reside in the state for more than 30 days a year (many states do this for their military members).
The last year that I had to pay taxes, I got the forms, filled them out, did the math, and figured out I owed the state of NY $32 more than what had been deducted from my check. So I went to the post office, got a money order for that amount, and sent it off with my return, figuring I was good to go.
A couple months later, I get a very official looking piece of mail from NY state, with a letter inside. The letter tells me that I owed the state more money, and if I didn't pay immediately, I could be subject to up to 10 years in prison and/or tens of thousands of dollars in fines! Holy cow! How much more did I owe them, for them to make threats like this??

TWO DOLLARS. Yep, I had done the math incorrectly, and owed them $2 more than I thought I did. Chances are, it cost them more to figure that out, print the letter off, and send it to me, then process the payment once it was sent, than the extra $2 they got out of me.

That's a big part of the reason why I am SOOOOOOO glad I don't live in that state any more!!


By ProZach on 7/3/2013 4:47:57 PM , Rating: 2
Ah, but they could make so much more money from prison labor from these petty pennies.

But seriously, you are probably right about their administration spending well over $100 in labor costs to send a scary demand letter. Guess someone there wants to keep his/her job.

quote:
Typical NY, always seeking to take advantage of a situation, to get more than they deserve!

I figured they were pursuing treble damages. If I'm not mistaken, they would claim Sprint committed wrongdoing with intent.


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