Hedge fund honcho wins $27 million tax fight with NYC
Filed under: Tax
Billionaire hedge fund manager Julian Robertson won a $27 million tax case after convincing a a judge that he wasn't a resident of New York City in the year 2000 -- and it all came down to four days.The way the law works is that anyone who spends more than half the year living in New York City is subject to the jurisdiction's taxes -- in 2000, the top tax rate was 3.78%, meaning that Mr. Robertson must have earned around $700 million in the year 2000.
The New York State Department of Taxation and Finance argued that because he couldn't provide proof that he didn't spend more than half the year in New York City, he had to pay the tax. Robertson and his lawyers, family, and his assistants spent countless hours pouring over schedules, calendars, tickets, etc. to convince a judge that he spent less than half the year in NYC proper -- with a good chunk of the rest of his time spent on Long Island.
According (subscription required) to The Wall Street Journal, "At issue was Mr. Robertson's whereabouts on four days during that leap year: April 15, July 23, July 31 and Nov. 16. The other 362 days were accounted for, with documentary proof of 183 days spent in the city and 179 spent outside."
By convincing a judge that those four days were spent outside of the city, Robertson was able to tip the scales to 184 days outside the city and 183 within its limits. . . thereby saving himself $27 million by slumming it on Long Island for one extra night.
I guess the takeaway is this: If you earn a lot of money and want to live in New York City, get a house close by and spend half the year there.
Reader Comments (Page 1 of 2)
11-08-2009 @ 6:24AM
Me said...
Wow, Chazziaz908 has hit on something that no one else EVER has!!!!
The INTERNET SCAM!!!! I've never believed I could make $300.00 a day by sitting at home doing absolutely nothing until I read his post.
I've heard of scams like this on the internet before, where you have to buy some stat-up software that does nothing but take up space on your hard drive.
I've heard of the internet scams where you pay nothing and Mr. Cunningham from Happy Days tells me that I will make a bunch of money selling merchandise that I don't have store, pay for, or even see.
But this guy who posted earlier on here has the magic solution.
I'm going to E-mail these people and give them my credit card number so I can get ripped off buying something that will do nothing.
Reply
11-08-2009 @ 9:52AM
love it said...
I consulted the Easter Bunny and Santa and they both swear by this as well. How else could they both only work one day a year and live so lavishly except if they ran a internet business from their homes???
11-08-2009 @ 1:31PM
KZK said...
11-08-2009 @ 6:24AM
Me said...
Wow, Chazziaz908 has hit on something that no one else EVER has!!!!
The INTERNET SCAM!!!! I've never believed I could make $300.00 a day by sitting at home doing absolutely nothing until I read his post.
Dear Me, Copy and Paste your enire remark everytime someone makes a ridiculous statement ..... keep on protecting those who do not know better. Hats Off To You Friend!
11-08-2009 @ 6:41AM
Nobody said...
"Me"-Your post was hilarious, I am still laughing!
Reply
11-08-2009 @ 6:45AM
Dottir said...
Hey I live on LI and I don't consider it slumming like they say in the article.
Reply
11-08-2009 @ 12:42PM
Christina said...
They were joking. No one considers it to be slumming.
11-08-2009 @ 7:38AM
David said...
Where is he registered to vote?
Reply
11-08-2009 @ 7:57AM
richard said...
What year has ever had 367 days????
Reply
11-08-2009 @ 9:46AM
John said...
Must be new math...
11-08-2009 @ 8:09AM
Aaron said...
Richard...362+4=366. Please graduate first grade before commenting anywhere on anything. TY, have a nice day...
...twit.
Reply
11-08-2009 @ 9:49AM
marcus said...
Before you start criticizing others.... add 183 plus 184 (see next to last paragraph). Feels a whole lot like 367 to me.
11-08-2009 @ 10:34AM
hello said...
yes but 183 and 184 is 367...
11-08-2009 @ 10:50AM
chuck said...
Zac the author is a article, not a math major. Put the blame on him. Maybe a really good lawyer convinced the judge there were 367 days in 2000. The truth is what the court and/or sometimes a jury believes, whether it is true or not.
11-08-2009 @ 11:16AM
shelby said...
leap year you fool
11-08-2009 @ 7:06PM
Zeth said...
The thing is.. is that no matter how many days the article said.. the real number is... he spent 179 out of the city.. and had to prove 4 days.. he proved those 4 days... and by my math that should be 183 days on the island.. didnt it say that the number he spent in the city also 183? i say tax him twice.. once for the city and once for the island... and while your at it.. fine him.. for being an arrogant rich person who thinks that he can spend a million dollars on a lawyer to prove a BS fact.
11-08-2009 @ 8:17AM
GJ said...
Not only that but 179 plus 4 do not equal 184,
Reply
11-10-2009 @ 10:21PM
Dick Tracy said...
Isn't the city's burden to provide proof of where he was? All these little power hungry government employees sucking up our money in taxes, so their masters they can waste them in idiotic stuff.
Help reduce taxes and government involvement in our lives, vote for the Libertarian Party.
Reply
11-08-2009 @ 8:51AM
HedgeFundWannabee said...
I would gladly pay 27M taxes to NYC....just can't seem to find a job that pays 700M a year....any offers out there??...willing to move to NYC and work 24/7....
Reply
11-08-2009 @ 8:54AM
John Connecticut said...
Aaron ... you are the "twit" and Richard is correct. The article says: "184 days outside the city and 183 within its limits" ... so 184+183=367, just as Richard points out. Maybe, you need to "please graduate first grade before commenting anywhere on anything, twit" ... no?
Reply
11-08-2009 @ 9:21AM
John said...
I guess when your that rich, you can buy extra days.
Reply