Global law firm Greenberg Traurig, LLP successfully guided Richmond, Virginia restaurant Philly Vegan through a highly publicized tax controversy with the City of Richmond. DeAndré R. Morrow, a Washington, D.C.-based attorney in the firm’s State and Local Tax Practice, led the matter.
The resolution not only positively settled the dispute for Philly Vegan but served as a catalyst for increased enhanced transparency and tax fairness for businesses throughout the city and Commonwealth of Virginia.
While registering for business taxes, Philly Vegan had relied on guidance from a city employee who initially advised that the business was exempt from certain tax obligations involving the city’s meals tax. This advice, which the city later contested, led to a multiyear dispute that encapsulated the challenges faced by small businesses navigating complex state and local tax landscapes.
The terms of the resolution with Philly Vegan and the city are confidential, but following the matter the city and the commonwealth have proposed changes to certain tax practices related to issues that Philly Vegan faced, including a recent “freeze” on penalties and interest as the city continues to review its enforcement of the meals tax. Additional proposed changes include extended repayment time and changing city code so meals tax payments are applied to the current month instead of the city processing overdue payments first.
“Philly Vegan’s journey from challenge to resolution exemplifies the positive results that can emerge from creative strategies and constructive dialogue between businesses and local officials,” Morrow said. “I am pleased for Philly Vegan to finally have this matter behind them and that our advocacy resulted in movement towards a more equitable and transparent system for all Richmond businesses.”
“DeAndre’s expertise in tax law and adeptness at engaging with government officials was pivotal in navigating our dispute to a favorable resolution,” said Samuel Veney, co-owner of Philly Vegan. “His dedication and innovative strategies not only resolved our issue but also advocated for a more equitable tax system for all businesses. His support was invaluable to Philly Vegan during this challenging time.”
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