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
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.