Sprint will have to pay $300 million in fines for tax fraud in the state of New York
Sprint in 2012 was accused of not billing its customers $100 million for the carrier’s wireless services over seven years, and as a result, the state of New York was and still is seeking $300 million in fines. The company, of course, appealed the decision, but now a report from Reuters is saying the court rejected Sprint’s appeal.
New York’s Court of Appeals in a 4-1 decision on Tuesday rejected Sprint’s claim that the state’s 2002 law putting sales taxes on interstate mobile phone services violated the US Constitution. And as a result, Sprint will be required to pay the imposed $300 million in fines.
While Sprint was told that they would have to pay these fines in 2012, the case was suspended due to Sprint’s appeal, which is always a long and lengthy process.
This is, of course, a big blow towards Sprint, as the carrier has already been hinted to be going through some financial struggles. It’s not necessarily going to hurt Sprint long-term, but its still a large blow for a company trying to compete with AT&T and Verizon.
source: Reuters
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