Judge ordered India to pay $42.4 million to New York City

Mar 19th, 2008 | Category:Breaking News, World News

Jed S. Rakoff US District Court Judge ordered the governments of India, Mongolia & the Philippines to pay New York City a total of $57.6 million in real estate taxes after a federal judge ruled that diplomatic privileges do not exempt the countries from tax obligations.

Jed S. Rakoff issued the order on Monday in a case that reached the Supreme Court. Jed S. Rakoff said that the city had a right to collect taxes on portions of buildings used by other countries for non-diplomatic purposes.

International treaties have defined consulates & embassies as sovereign territory, which makes them generally tax exempt but Rakoff said it was clearly stated that only the home of the head of a mission is exempted from taxes in the Vienna Convention on Consular Relations and the Vienna Convention on Diplomatic Relations.

India was ordered to pay $42.4 million in taxes related to a 26-story tower near the United Nations with 20 floors of apartments occupied by diplomatic employees.

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