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NEW YORK, APRIL 28: A US federal appeals court ruled that New York City can sue foreign missions for non-payment of property taxes.
US judge Robert Katzmann, wrote that a foreign country can't "assume the benefits of ownership...while simultaneously disclaiming the obligations associated with them.... When owning property here, a foreign state must follow the same rules as everyone else."
Two of the concerned countries are India and Mongolia. They had been sued by the city, but had claimed sovereign immunity that gives them freedom of not being sued in US.
India has contested the city's claim that it owes $27.8 million in taxes on the part of the property which it is using for non-diplomatic purposes.
Of the 26 floors of the building, six floors and basement house the offices and other facilities of the mission and rest are used for residential purposes for its officers.
But most of the amount the city is claiming is interest on unsettled bills.
Though no immediate comment was available on Thursday's ruling, India had earlier argued that the officers staying are diplomats who enjoy tax exempt status.
The ruling does not tackle specific cases. However, some missions have rented their space on which they are liable for taxes but that is not the case with India.
In this context, Turkey had settled its dispute with city for 5 million dollars, much less than originally claimed by the city. |