Wealth
Sotheby’s Sued by New York for Helping Client Avoid Taxes
- State says auction house knew client was collector, not dealer
- Shipping magnate purchased $27 million in art from Sotheby’s
Sotheby’s was accused by New York’s attorney general of helping a wealthy shipping company owner avoid paying income taxes on artwork he purchased from the auction house.
Sotheby’s allowed $27 million of art to be purchased tax-free by Porsal Equities, which is controlled by the shipping company owner, even though the auction house knew the client wasn’t an art dealer but was instead a collector buying for his personal use, the state said in a lawsuit filed Friday. Only dealers planning to resell art qualify for exemptions to city and state sales tax, the state said.