Sprint might have to pay heavy fines in New York sales tax evasion case


Sprint’s alleged sales tax evasion case in New York has received a major setback, with the Appeals Court in New York shooting down the carrier’s proposal to reject the case. Sprint was clearly upset about the decision and is believed to be assessing its future course of action very carefully.

It is believed that Sprint evaded close to $130 million in sales tax. If found guilty, the carrier will have to pay up to three times in fines under the False Claims Act. The original accusation claims that Sprint has been evading sales tax in the state since 2005, so this has been happening for quite a while. The case came to light in 2011 when a whistle blower revealed Sprint’s alleged wrongdoings which was later followed by a local court finding Sprint guilty.

New York Supreme Court Judge O. Peter Sherwood dismissed Sprint’s case and said – “Plaintiff’s complaint adequately alleges that defendants violated New York’s False Claims Act.” By the look of things, it seems like only a miracle can save Sprint from the government authorities now.

Source: Bloomberg

Via: Phone Scoop

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