Friday, September 25, 2015
Estate of Former Detroit Pistons Owner Sues Deloitt For $500 Million For Botching Tax Plan
Following up on my previous posts:
- IRS Hits Estate of Former Detroit Pistons Owner With $2 Billion Tax Bill (Aug. 15, 2013)
- Estate of Former Detroit Pistons Owner Settles $2.8 Billion Gift, Estate & GST Deficiency Claim For 11 Cents On The Dollar (July 8, 2015)
Bloomberg, Deloitte Sued for $500 Million by Estate of Ex-Pistons Owner:
A Deloitte unit allegedly promised a tax plan under which former Detroit Pistons owner Bill Davidson would “win if he lived, or win if he died.”
It didn’t work out that way. Four years after the 2009 death of the multibillionaire, his estate was hit with a $2.7 billion tax bill, according to a lawsuit filed in New York.
The estate sued Deloitte Tax LLP Thursday to recover $500 million in taxes, fees and penalties from the adviser.
Deloitte Tax failed to disclose the risks of the tax plan that it recommended to Davidson in order to secure him as one of its “marquee clients” who could generate large fees and serve as a “showpiece” to promote its services to other wealthy people, the estate said in the lawsuit.
(Hat Tip: David Herzig.)
- Detroit News, Davidson Estate Sues Deloitte Tax Over $2.7B IRS Bill
- Forbes, Why Detroit Pistons Heirs Got Slam-Dunked By IRS