Sprint Hit with $300 Million Lawsuit for Alleged New York Tax Fraud
July 2, 2013 2:53 PM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
RE: Why the heck didn't Sprint just pay their taxes?
7/4/2013 12:29:28 PM
My wife still has unlimited 4G LTE on Verizon. It is very sad - she only uses between 1-2GB a month...
"Well, there may be a reason why they call them 'Mac' trucks! Windows machines will not be trucks." -- Microsoft CEO Steve Ballmer
Canada to Bitcoin Miners: "Pay Yer Taxes"
April 29, 2013, 10:52 AM
Apple Won't Let UK Sons Unlock Their Deceased Mother's iPad
March 6, 2014, 12:44 PM
Benchmarks for NVIDIA Tegra K1 Hit the web
March 6, 2014, 8:57 AM
Microsoft's Gates, Nadella, Bates Initially Opposed Nokia Acquisition; Said Microsoft Should Stick with Software
March 5, 2014, 1:33 PM
94% of Old BlackBerry Trade-ins at T-Mobile Favor Other Brands During Special Promotion
March 5, 2014, 12:12 PM
Xbox One March Update Roll Out Begins Today
March 5, 2014, 9:36 AM
Quick Note: Roku Unveils HDMI-based Streaming Stick, Takes on Chromecast
March 5, 2014, 9:22 AM
Most Popular Articles
Mt. Gox Bitcoin CEO Can't Stifle Grin as he Bows in Apology for Bankruptcy
February 28, 2014, 5:00 PM
Facebook Kills Popular Messenger App for PCs
March 1, 2014, 4:01 PM
Report: Microsoft Considering Offering Free “Windows 8.1 with Bing”
February 28, 2014, 10:21 AM
Two More Microsoft Executives Leaving the Company
March 3, 2014, 4:38 PM
USAF Moves Forward With Long Range Bomber Program Despite Budget Crunch
March 4, 2014, 9:44 AM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information