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New York City seeks $106 mn from four nations, including India
New York, Apr 10: In a bid to fill its 3.4 billion dollars budget gap, the New York City has begun legal proceedings against India, Mongolia, The Philippines and Turkey to recover 106 million dollars which it alleges they own in property taxes.
New York, Apr 10: In a bid to fill its 3.4 billion dollars budget gap, the New York City has begun legal proceedings against India, Mongolia, The Philippines and Turkey to recover 106 million dollars which it alleges they own in property taxes.
In a suit filed in the Manhattan's Supreme Court, the city alleges that India owes 16,376,702 dollars in property taxes for the property it owns in prime midtown area near the United Nations since 1985.
India had rebuilt a multi-storey building from which its mission to the United Nations operates. It also has residential apartments in which diplomats and officers of consulate stay. The city says that under Vienna Convention, the property used for official purposes by foreign governments is exempt from taxes but when used for residential purposes for "not senior" staff, it is subject to property tax.
The complaint against India and Mongolia says that the property is being used to house employees other than the ambassadors or the head of the mission. Attorneys for New York said they were not seeking to seize the properties, the normal recourse for unpaid taxes. Instead, the city will try to obtain court judgments against the four countries and seek to have them applied to other assets, such as bank accounts and commercial properties they own.
The papers filed in the court said the amount city is seeking to recover includes the principal, interest and other charges as of February 1. The maximum, according to the lawsuit, is owed by Turkey and stands at more than 70 million dollars. The Philippines owes more than 17.7 million dollars and Mongolia over 200,000 dollars.
Bureau Report
India had rebuilt a multi-storey building from which its mission to the United Nations operates. It also has residential apartments in which diplomats and officers of consulate stay. The city says that under Vienna Convention, the property used for official purposes by foreign governments is exempt from taxes but when used for residential purposes for "not senior" staff, it is subject to property tax.
The complaint against India and Mongolia says that the property is being used to house employees other than the ambassadors or the head of the mission. Attorneys for New York said they were not seeking to seize the properties, the normal recourse for unpaid taxes. Instead, the city will try to obtain court judgments against the four countries and seek to have them applied to other assets, such as bank accounts and commercial properties they own.
The papers filed in the court said the amount city is seeking to recover includes the principal, interest and other charges as of February 1. The maximum, according to the lawsuit, is owed by Turkey and stands at more than 70 million dollars. The Philippines owes more than 17.7 million dollars and Mongolia over 200,000 dollars.
Bureau Report