4 ms·
> "If the state wins, Hyatt would be on the hook for at least $13.3 million in taxes and penalties from 1991 and 1992. At past court appearances, the state has
by whack 9y ago
> "If the state wins, Hyatt would be on the hook for at least $13.3 million in taxes and penalties from 1991 and 1992. At past court appearances, the state has argued that Hyatt owes more than $55 million when interest is tacked on to those initial charges."
> "The Franchise Tax Board has already spent $25 million trying to collect the money while defending itself from Hyatt’s lawsuits, department spokesman Jacob Roper said."
Is it just me or do the above numbers sound ridiculous. Why is the govt spending $25M on a case, that if it wins, would result in a $13-55M payout?
Edit: To put the above numbers in context, the IRS recoups about ~$60B in tax enforcement, on a ~$10B budget. That's a 600% return on investment. I would have expected the California state tax enforcers to budget themselves in a similar manner.
http://www.huffingtonpost.com/2011/04/28/irs-budget-cuts-deficit_n_850243.html http://www.huffingtonpost.com/2011/04/28/irs-budget-cuts-def...
- slededit 9y agoTo enforce the law? If we only enforced laws when economical to do so we'd leave most unsolved.
- thaumasiotes 9y agoWe do leave most laws unenforced. If laws had to be enforced, almost all of them would quickly be thrown out.
- valuearb 9y agoIf all laws had to be enforced, most of the country would be in jail.
- utternerd 9y agoFor as little as clearing your browsing history[0]. https://www.techdirt.com/articles/20150606/16191831259/according-to-government-clearing-your-browser-history-is-felony.shtml https://www.techdirt.com/articles/20150606/16191831259/accor...
- tryingagainbro 9y agoWhy is the govt spending $25M on a case, that if it wins, would result in a $13-55M payout? So YOU and me learn. CA will leave no stone unturned to get their money...
- jimbert 9y agoI think that would set a terrible precedent that your tax obligation is equal to your legal team costs to drown the government in paperwork or actual tax liability, which ever is lower.
- function_seven 9y agoSame reason a grocery store will spend $100 to catch and prosecute a shoplifter for taking a $2 candy bar. It's more expensive if they don't go after tax cheats. (I'm not making a judgement on this specific case, but rather the idea of spending more money than you will recover in general)
- refurb 9y agoPour encourager les autres