Foreign Investment Firm Owes US $97 Million for New Jersey Deals

A Cayman Islands partnership is liable for nearly $96.8 million in tax deficiencies and penalties after the US Tax Court found that it failed to withhold taxes on income from an affiliated US financial adviser.

YA Global Investments LP’s income was “effectively connected” with its business in the US conducted through New Jersey investment management firm Yorkville Advisors, meaning the partnership should have withheld taxes on that income from 2006 through 2009, Judge James S. Halpern of the US Tax Court said. YA Global entered the stipulated decision Thursday and retains the right to appeal.

• YA Global first sued the ...