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NY sues Sprint for $300M over alleged tax fraud

Categories: Sprint
By: , IntoMobile
Thursday, April 19th, 2012 at 8:21 AM
sprintceo

The state of New York is suing Sprint for over $300 million, claiming that Sprint deliberately committed tax fraud by not collecting or paying millions of dollars in taxes for its service in the state. According to Reuters, Sprint has failed to collect the requisite tax for 7 years. $300 million represents three times the amount underpaid, plus penalties.

The state of New York is arguing that Sprint openly decided to not collect taxes as a means of undercutting Verizon and AT&T. Sprint offers one of the cheapest rate plans of the major 4 wireless carriers.

The case will be tried in the New York Supreme Court, and is the first tax enforcement filed under New York’s False Claims Act. No court dates or further details on the case have been provided. We’ll be watching this one closely as it develops, as it could have significant impacts on Sprint’s business model.

Developing…

[via Reuters]

About The Author

Anthony Domanico

Anthony is a freelance tech journalist covering the mobile beat. He has used all operating systems in existence today, and currently rocks the iPhone 5, Nexus 7, and iPad mini.

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