Photographer: Michael Nagle / Bloomberg
Photographer: Michael Nagle / Bloomberg
New York has a warning for hedge fund managers: pay your taxes like everyone else.
Officials delivered the message as they announced that Thomas Sandell and his hedge fund, Sandell Asset Management Corp., would pay $ 105 million to New York, the largest fine of its kind in the state, after being accused of having a move to Florida to prevent that their taxes on the state and city 2017 on deferred fee income of nearly half a billion dollars.
Read more: Billionaire fund manager pays $ 105 million in tax case
“Tax revenue pays for important city services. “When a deadly pandemic has hit the economy and our city’s budget is strained, every dollar counts,” said New York City Corp. James Johnson. “Hedge funds are required to pay taxes just like everyone else and if that does not happen, we will use our legal equipment and strategies to hold them accountable. “
Several high-profile executives have opened offices in Florida in recent months, and Elliott Management Corp. has moved its headquarters there. The hefty fine indicates that the state and city of New York will guard any actions to ensure that relocations are not just a tax evasion.
The Sunshine State, which has no individual income tax, estate or capital gains tax, has been trying to attract investment firms from New York and the Northeast for years, and the trend accelerated during the pandemic.
In the settlement reached under the False Claims Act in New York, neither Sandell nor his company acknowledgeAccording to the statement, the allegations testified or denied.