New York State Sues Sprint Over Tax Fraud
Updated: added response from Sprint
The New York State attorney general filed a lawsuit against Sprint Nextel today, alleging that the company deliberately failed to bill customers for $100 million worth of taxes over a seven-year period. The lawsuit is the first to be filed with New York's new False Claims Act. The state is seeking three times the amount of uncollected taxes plus unspecified penalties. New York also accused Sprint of purposely refusing to collect the taxes in order to lower the monthly bill for its services when compared to rivals AT&T and Verizon Wireless. Sprint responded, "This complaint is without merit and Sprint categorically denies the complaint's allegations. We have collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law. 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."
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Sprint to Face $300M Tax Fraud Charge In Court
Sprint lost its bid to have a $300 million lawsuit dismissed and will now face the State of New York in court. The office of New York Attorney General Eric Schneiderman alleges that Sprint failed to collect about $100 million in taxes from its New York-based customers over a period of seven years.
The big question is....
whoever filed this
I dont want to sound bias but no company's stupid enough to think that they can get away with something as big as this one. if this is true, might have been something unintentional.
I personally doubt this since Sprint,like any other company has a dedicated department for stuffs like this. just my 2cents
Sprint has been conducting shady business practices (like this) and "fuzzy math" billing since it was built.
Does that necessarily mean that sprint meant to produce mal content ?
Ice berg ahead.
How about the states all work towards demanding lowering the monthly charge for smart phones!
What I will say is that if Sprint's motivation was indeed to "lower bills" to get a one-up over competition, this will hurt their already fragile economic condition! They are already struggling to stay close to $4 a s...