NEW YORK (Legal Newsline) — International art dealer Gagosian Gallery has settled for $4.28 million after allegations of violating state rules involving taxes, New York state Attorney General Eric T. Schneiderman has announced.
The gallery, owned by prominent contemporary art figure Laurence Gagosian, deals contemporary art and has locations in New York City, Beverly Hills, San Francisco, London, Paris, Geneva, Switzerland, Rome, Athens and Hong Kong.
Schneiderman’s office alleged Pre-War Art Inc., an affiliate of the gallery, sold and shipped close to $40 million of art between 2005 to 2015 to consumers in New York without collecting or remitting sales tax at the state or local level. Additionally, the company sold art out of state without collecting New York taxes.
“There is one set of tax rules for all, and that includes art dealers and collectors,” Schneiderman said. “Those who fail to pay their fair share can deprive the state of millions of dollars, leaving ordinary New Yorkers to foot the bill. We will continue to remain vigilant in order to ensure that art dealers and collectors fully abide by the state’s tax laws.”
In addition to the monetary fines, Gagosian Gallery agreed to establish a shipping division that will handle out-of-state sales and charge New York state and local taxes for art shipped out of state.