Bloomberg Tax
July 29, 2021, 8:46 AMUpdated: July 29, 2021, 12:22 PM

New York Said to Be Cheated of Millions in Tax by Headhunter (1)

Michael J. Bologna
Michael J. Bologna
Staff Correspondent

Global headhunter Egon Zehnder allegedly cheated the city and the state of New York out of millions under a 10-year tax dodge designed to underreport U.S.-based earnings while ginning up illegitimate losses, according to a recently unsealed tax whistleblower complaint.

The complaint accuses New York-based Egon Zehnder International Inc. (EZI USA) and its parent Zurich, Switzerland-based Egon Zehnder International AG (EZI AG) of an elaborate scheme to offshore $86 million in U.S.-based taxable income while onshoring $7 million in deductible losses from its foreign affiliates. The net effect of the scheme allegedly cheated the Empire State out of $13.25 million ...

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