NEW YORK (Legal Newsline) – Aby J. Rosen, a contemporary art
collector, has agreed to pay $7 million to resolve allegations he failed to pay
millions in sales and use taxes on art acquisitions, New York Attorney General
Eric T. Schneiderman announced.
Rosen allegedly commissioned more than $80 million worth of
contemporary art. However, he purportedly did not pay the applicable state and city sales and use taxes on any of the purchases.
“We are committed to rooting out tax abuses wherever we find
them, especially in the art world, where the difference can be hundreds of
thousands – if not millions – of dollars in lost tax revenue per sale,”
Schneiderman said. “When art collectors don’t pay their fair share, law abiding
New Yorkers should not be stuck footing the bill.”
In addition to the monetary fines, Rosen agreed to a code of
conduct. He agreed to not use resale certificates when purchasing artwork and
timely report and pay New York state and local government compensating use
taxes on artwork purchased for resale but then diverted to a taxable use, like
displaying the artwork at his real estate business.