Sprint forced to defend $300 million New York State tax fraud case

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Steve Dent
July 2nd, 2013
In this article: lawsuit, NewYorkState, NY, sprint, Taxes, TaxFraud
Sprint forced to defend $300 million New York State tax fraud case

Sprint's bid to dismiss a $300 million tax suit filed by New York's attorney general has been denied by the state's supreme court, according to Bloomberg. The judge in the case decided the claims "satisfactorily allege that Sprint knowingly submitted false monthly tax statements," and that a hearing will take place later this month. The so-called whistle-blower lawsuit arose in 2011 after Sprint believed it could withhold up to 25 percent of the taxes it was supposed to collect on fixed-rate wireless contracts. For its part, the state claimed it illegally treated them as nontaxable, adding that operators like AT&T and Verizon "correctly paid" them. The carrier said it intended to file an appeal, adding that New Yorkers, "who already pay some of the highest wireless taxes in the country," are being forced to "pay even more." Of course, given the recent merger approval by shareholders, Sprint's headache could soon become Softbank's, too.

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