AL based investment firm to pay $40M in NY tax abuse settlement - Montgomery Alabama news.

AL based investment firm to pay $40M in NY tax abuse settlement

(Source: Raycom News Network) (Source: Raycom News Network)

An Alabama-based investment management firm has agreed to pay $40 million to resolve claims over unpaid taxes in New York State.

New York's Attorney General Eric T. Schneiderman says the firm Harbert Management Corporation, based out of Birmingham, and its top executives deliberately avoided paying millions in taxes for several years.

“Our investigation uncovered a brazen and deliberate decision to avoid paying millions in taxes owed to New York State,” Schneiderman said. “Harbert Management made a clear choice to skirt the rules and as a result, ordinary New York taxpayers were left footing the bill. On tax day, this sends a forceful reminder to businesses that if they think they can get away tax evasion in New York, they should think again.”

The settlement, which Schneiderman says is the largest tax-related recovery by the AG’s office, stemmed from a lawsuit filed under seal in 2015 by a whistleblower.

A spokesman for the company denies any wrongdoing in the case.

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