Can a whistleblower report Sales Tax Evasion by bringing a false claims act (FCA) case?
Yes. In some states, such as New York, there are state false claims acts that expressly provide for bringing sales tax evasion cases. On March 14, 2014, New York State Attorney General Eric T. Schneiderman announced a $6.2 million settlement with Lantheus Medical Imaging, a former subsidiary of Bristol-Myers Squibb. NYS alleged that Lantheus did not pay a total of $2.2 million in applicable New York State business franchise taxes, New York City corporation taxes or MTA surcharges from 2002 to 2006 on income from Lantheus’ sales of medical imaging products to hospitals, clinics and other facilities in New York, as well as from its training and servicing activities. The settlement resolved a NYS False Claims Act case that began with a whistleblower filing a qui tam complaint. The whistleblower who brought the case will receive just over $1.1 million.
