New York City Comptroller Wins Court Case For Access To Department Of Finance Tax Records
NEW YORK, NY — In a sweeping decision released today, the New York State Supreme Court granted in full the petition of the Office of the City Comptroller for an Order enforcing the Comptroller’s powers under the City Charter to access the Department of Finance tax records necessary to audit Finance’s collection of the General Corporation Tax (GCT).
“Today’s decision by the Supreme Court is a victory for open, transparent government,” Comptroller Stringer said. “This ruling reaffirms the New York City Comptroller’s fundamental authority to audit City agencies and gain access to City records in carrying out its Charter-mandated responsibilities. For too long, the Department of Finance has relied on a complete misreading of the law to hide its General Corporation Tax collection practices from public scrutiny. Taxpayers have the right to know whether the City is properly collecting every dollar of tax revenues that it is owed and we intend to do that.”
The Comptroller’s Office filed the lawsuit in November 2013, after the Department of Finance, citing State tax secrecy laws, refused to provide the records. In rejecting the arguments of the Department of Finance, and the Opinion of the Corporation Counsel upon which those arguments were based, the Court ruled that the Comptroller must have access to the GCT tax records so as to exercise his powers under Sections 93(b), (c) and (d) of the City Charter to “audit all agencies…”, to “audit and investigate all matters relating to or affecting the finances of the city, including. . .the receipt and expenditure of city funds,” and to “audit. . .all official accounts and the accrual and collection annually of all revenues and receipts.”
The Court noted that the Comptroller had shown both that the records were needed to determine the security and reliability, including the accuracy and completeness, of the assessment and collection of the GCT, and that the Comptroller had put in place adequate safeguards for the confidentiality of those records.
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