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Originally Posted by Sweet Lady
Is it true that NYRA is involved in yet another scandal involving shortchanging the state out of $11 million through a combination of incompetence and criminality? That report was in yesterday's papers and I'm wondering if any of the NYRA insiders who haven't been indicted yet know anything about this latest scandal. Thanks.
I found the story I was referring to: http://www.nypost.com/seven/12042007...____583878.htm
Does anyone know if this is true? |
http://www.thoroughbredtimes.com/nat...-question.aspx
NYRA President Charles Hayward said the case is nothing more than a dispute over accounting practices.
“This has been an issue for almost ten years,” he said.
He compared the situation to NYRA’s recent dispute with the Internal Revenue Service, which said NYRA owed the government $1.6-billion. In that case, the IRS used all handle, on- and off-track, before winnings are paid out to calculate NYRA’s income.
NYRA successfully argued that it should only be taxed on net income. The IRS has set a cap on its NYRA claim at no more than $25-million, and the final settlement could be $15-million or less.
Likewise, the state has recommended that NYRA change its accounting practices but has not demanded that it do so, Hayward said. He said he believes NYRA would prevail if the case ever went to court.
“We’ve had a fundamental disagreement over how the calculation’s arrived at,” he said. “We’ve gotten legal support from counsel, we’ve gotten accounting firm support. We just think that’s the way to do it. So do our lawyers. So do our accountants.”