Art Market Tax Probes Make Domestic Freeports Appealing
Blaise Niosi On May 12, 2006, Manhattan District Attorney (DA) Robert M. Morgenthau announced that L. Dennis Kozlowski, former CEO of Tyco International, would pay $3.2 million to settle charges of avoiding sales tax on 12 paintings he purchased from art dealers in Manhattan and London.
While the amount of Kozlowski’s settlement is staggering, his story is not unique. In the years leading up to Kozlowski’s settlement, the Manhattan DA’s office undertook a broad investigation of galleries that had failed to collect, and buyers...
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