India/Philippines Dispute New York's Tax Claim

by Leroy Baker, Tax-News.com, New York

14 April 2003

New York City's decision to file claims for back taxes against four countries for alleged commercial use of property has met with a firm rebuke from some of the nations involved.

It emerged from reports at the end of last week that the Indian government is protesting the allegation that it rented out part of its 26 storey building near the UN centre in Manhattan, thus making it liable for city estate tax. The New York authorities are seeking $16.3 million in unpaid arrears and interest.

Discussions on the issue had been ongoing for some time said a spokesman for the Indian Mission to the UN. However, the Indian government intends to take up the matter with the US State Department and American Mission to the United Nations.

Meanwhile, the Philippines, which is being told to pay $17.7 million in unpaid real estate taxes and interest to the city intends to fight its case in court. Foreign Affairs Secretary Blas Ople called the action brought by the New York authorities 'highly unreasonable', and said it was derived from a misappreciation of the applicable laws, reported news agency Reuters.

The other nations accused of defaulting on their taxes are Turkey and Mongolia. Last week New York Mayor, Michael Bloomberg, announced they owed city coffers $70 million and $2.1 million respectively. Turkey is also thought to be contesting the claim.

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