The New York State Supreme Court, Appellate Division, affirmed a New York trial court decision denying a taxpayer’s motion to dismiss a False Claims Act suit brought against the taxpayer in relation to its sales of artwork to an alleged art collector under a resale exemption. According to the complaint, an employee of the taxpayer
New York
Get out of town! Court upholds New York City tax applying investee apportionment
Posted in New York
On April 12, 2022, the Appellate Division, First Department dismissed a taxpayer’s appeal from the New York City Tax Appeals Tribunal, and held that the Tribunal’s decision to uphold a tax assessment on an out-of-state entity’s gain from the sale of a partnership interest was “rational.”[1]
The taxpayer was an investment vehicle that formed…
New York False Claims Act case remains in federal court
By Jonathan Feldman & Jeremy Gove on
Posted in Income Tax, New York
The Southern District of New York denied a plaintiff-relator’s motion to remand a dispute over the defendant’s transfer pricing arrangement brought under the New York’s False Claims Act to New York state court. The plaintiff initiated the suit on behalf of the State of New York in state court alleging that the company did knowingly…
You’re not imagining it, it’s real! Picasso painting exempt from sales tax
By Chelsea Marmor & Michael Hilkin on
Posted in New York
The New York State Tax Appeals Tribunal held that a limited liability company was entitled to a refund of sales tax paid on the purchase of a one-half interest in a Pablo Picasso painting because the taxpayer leased its share of the painting on the same day the painting was purchased. On April 20, 2015,…
New York Tax Appeals Tribunal concludes IT managing and monitoring services are taxable
By Scott Wright, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, New York
The New York Tax Appeals Tribunal upheld the New York Division of Tax Appeals’ determination that an information technology security company provides a taxable protective service. The taxpayer provides monitoring and firewall management services, by configuring its customers’ software and devices to prevent malicious activity. The Department of Taxation and Finance asserted that the taxpayer’s…
New York Tax Appeals Tribunal affirms determination that measuring advertising effectiveness is taxable
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, New York
The New York Tax Appeals Tribunal mostly affirmed the New York Division of Tax Appeals determination that a company’s provision of advertising measurement services was a taxable information service. The taxpayer provides services to its clients that measure advertising effectiveness. New York taxes the provision of information services, but exempts information services that are personal…
Legal Alert: New York Governor announces fiscal year 2023 budget
Posted in Legal Alert, New York
On January 18, 2022, New York Governor Kathy Hochul released her fiscal year 2023 budget and accompanying legislation (the Budget Bill). The Briefing Book accompanying the Budget Bill highlights New York’s “remarkable reversal of fortune as tax revenues rebound”—giving the Governor the room to propose a variety of tax cuts targeted toward the middle-class and…
Governor Hochul releases New York budget Briefing Book with tax proposals
By Nikki Dobay & Michael Hilkin on
Posted in New York
On January 18, 2022, Governor Kathy Hochul released the fiscal year 2023 budget Briefing Book. While we are still waiting for the public release of accompanying legislation (i.e., the Budget Bill) and memoranda, the Briefing Book indicates that the Budget Bill will propose a variety of tax cuts targeting middle-class individuals and small businesses.…
New York ALJ determines multilevel marketing company’s web-based service not taxable
By Jonathan Feldman, Jeremy Gove & Alla Raykin on
Posted in Digital Economy, New York
The New York Division of Tax Appeals determined that a multilevel marketing company’s provision of access to its web-based software that contains confidential and proprietary information and reports for use in developing business was neither the taxable sale of prewritten computer software, nor the sale of a taxable information service. The company, a multilevel marketing…
New York’s Governor Hochul rejects flawed False Claims Act expansion
By Nikki Dobay, Michael Hilkin & Cyavash Ahmadi on
Posted in New York, Policy and Legislation
On New Year’s Eve 2021, New York’s Governor Hochul vetoed Senate Bill S. 4730, delivering a win to taxpayers. The bill as passed by the New York Legislature earlier this year proposed to expand New York’s already overreaching False Claims Act (FCA).
Most states have a false claims act that is modeled after the federal…