New York Attorney General Eric Schniederman files lawsuit against Sprint Nextel for failing to pay taxes – Part 1

New York Attorney General Eric Schniederman filed a lawsuit against Sprint Nextel in New York for the allegedly unpaid sales taxes to the State and the city. The Attorney General followed the whistleblower lawsuit filed in March, 2012 against the cellphone carriers.

According to Schniederman, Sprint failed to report the collection and payment of sales taxes for the calendar year 2011. According to the complaint lodged, Sprint did not pay taxes in the tune of $100 Million, while the Attorney General plans to claim $300 Million in penalties.

Sprint failed to collect and pay state and local taxes on flat-rate wireless calling plans, Schniederman said in a statement today.

“The message of our office is clear — tax dodging is not acceptable and we will use every tool in our arsenal to make sure that taxpayers’ money is protected, and that honest businesses and consumers are not placed at a disadvantage for collecting and paying their fair share of taxes,” he said.

Sprint has been in hot waters since the launch of 4G LTE and WiMax from the likes of Verizon, AT&T and even T-Mobile.

Due to ultracompetitive 4G market in the US, Sprint has been forced to invest heftily in the 4G HSPA+ and LTE upgrades to its networks. Moreover, the company has been paying huge subsidies to Apple for its iPhones and iPads to stay in the smartphone market. Android market is another story.

The company however, negated any allegations pull against them. Instead, they were all complaint and protest against the state and city management on the hostile tax rates imposed on the carrier companies and their patrons.

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Posted by Usman Khalid on Apr 20 2012. Filed under USA, World. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.