Hotel Investor on the Hook for $15 Million in NY Franchise Taxes

The New York Tax Appeals Tribunal declined to disturb a $15 million corporation franchise tax bill the state imposed on an Isle of Man-based company that refurbishes luxury hotels, in a ruling posted Thursday.

The tribunal upheld the New York Division of Taxation estimation of Cushlin Ltd.'s tax liability, which the department calculated after the company failed to file tax returns for tax years 2002 to 2008.

“The Division provided petitioner with multiple opportunities over several years to supply the necessary substantiation to support or refute the initial findings, however it failed to do so,” the tribunal said. When ...