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You are here: Home1 / Tax Law2 / IN THIS PROSECUTION ALLEGING DEFENDANT CELL PHONE COMPANY’S UNDERPAYMENT...
Tax Law

IN THIS PROSECUTION ALLEGING DEFENDANT CELL PHONE COMPANY’S UNDERPAYMENT OF SALES TAX, DEFENDANT WAS ENTITLED TO THE SALES TAX RETURNS OF OTHER CELL PHONE SERVICE PROVIDERS.

The First Department determined defendant Sprint Communications was entitled to the state’s sales tax returns and records of other providers of mobile telecommunications voice services, but with the names of the providers redacted.  The action was brought by the state and alleged the underpayment of sales tax:

The People claim that they will use only material obtained from third-party discovery and that they have disclosed those materials to defendants. However, the fact that the People have chosen to restrict the materials they will use to prosecute defendants does not mean that defendants must restrict the materials they will use to defend themselves. Moreover, defendants cannot obtain … [the] documents from third parties.

If a document that shows another cell phone company’s or DTF’s position about debundling, etc., happens to mention the other cell phone company’s name, the People may not withhold the entire document. … Instead, the People should replace the taxpayers’ names with “Cell Phone Company No. 1” and “Cell Phone Company No. 2,” or the like. People v Sprint Communications Inc., 2017 NY Slip Op 01801, 1st Dept 3-15-17

 

TAX LAW (IN THIS PROSECUTION ALLEGING DEFENDANT CELL PHONE COMPANY’S UNDERPAYMENT OF SALES TAX, DEFENDANT WAS ENTITLED TO THE SALES TAX RETURNS OF OTHER CELL PHONE SERVICE PROVIDERS)/SALES TAX (CELL PHONE SERVICE PROVIDERS, IN THIS PROSECUTION ALLEGING DEFENDANT CELL PHONE COMPANY’S UNDERPAYMENT OF SALES TAX, DEFENDANT WAS ENTITLED TO THE SALES TAX RETURNS OF OTHER CELL PHONE SERVICE PROVIDERS)/CELL PHONE SERVICE PROVIDERS (SALES TAX, IN THIS PROSECUTION ALLEGING DEFENDANT CELL PHONE COMPANY’S UNDERPAYMENT OF SALES TAX, DEFENDANT WAS ENTITLED TO THE SALES TAX RETURNS OF OTHER CELL PHONE SERVICE PROVIDERS)

March 15, 2017
Tags: First Department
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