Sprint which is an internet service provider and also one of the largest mobile network operator in the USA has decided to pay New York State $330 million in a settlement. The New York state government has accused the Sprint of not collecting state taxes on cellular plans from 2004 to 2014. The case between the State vs. the Sprint was going from the last few months, and now the judgment has finally arrived which states the company will have to pay for misinterpreting the law terms. Because according to the lawsuit Sprint intentionally misinterpreted the law not to collect any amount of state taxes due to which new york state government lost a considerable amount of tax revenue.
If there’s one thing which every business or a company likes to do then it’s earning a massive amount of profits but more than that a company will always have to comply with tax regulations to sustain in business. However, it seems like a little tax saving trick of Sprint now has backfired the company, and that’s why now they have to pay more than 330 millions of dollars for not collecting local taxes. According to the law, Sprint had to raise taxes on all type of calls such as interstate, intrastate or internationals. But according to the Attorney General’s office the company collected taxes on only interstate calls and they avoided collecting the local taxes intentionally.
Sprint has welcomed this judgment, and they are ready to write a tremendous amount of cheque to the New York State government which according to the company is the right thing to do. However, this decision of the court of law must have sent a message to other telecommunication companies which are trying to save taxes by misinterpreting the law.