Sotheby's Settles $6.25 Million Tax Fraud Case in New York

The auction house agrees to pay and implement reforms after allegations of helping clients evade sales taxes on art purchases.

Sotheby's settled with New York Attorney General Letitia James over accusations of aiding clients in avoiding sales taxes on art worth tens of millions of dollars.
The settlement involves a $6.25 million payment, covering damages, penalties, and legal costs, but Sotheby's did not admit to any wrongdoing.
The case focused on the misuse of resale certificates, which were falsely used to claim tax exemptions for art intended for private use rather than resale.
A key client, identified as 'the Collector,' reportedly avoided taxes on $27 million in art purchases, including works by Jean-Michel Basquiat and Anish Kapoor.
Sotheby's has committed to policy reforms and enhanced employee training to prevent future misuse of resale certificates.