“New York City” dayA few former employees are learning that it’s a bad idea to poke a Tiger cub. That applies ten-fold to the leader of the pack, the inimitable Julian Robertson.
The Tiger Management founder had a tough 2000. The then-68-year-old shuttered his legendary hedge fund because he didn’t understand those newfangled gadgets that everyone on the Street was going so crazy for. Then, the New York State Dept. of Taxation and Finance slapped him with a huge freakin’ tax bill, saying he’d spent more than half of the year living in the Big Apple.
Not so, J-Rob countered: He only spent exactly 183 days in the city that year. And he launched an all-out war to prove it. Robertson and his staff spent a ridiculously extraordinary amount of time trying to account for the big guy’s every step nine years ago. In the end, it came down to just four days, including, ironically, tax day, April 15.
Thanks to the reams and reams of evidence presented by Team Robertson, we now know some of Mr. Robertson’s pet peeves, as well as at least one of Mrs. Robertson’s (hint: it’s him). For one, the billionaire has no idea how to use voice mail. He hates LaGuardia Airport (who doesn’t), and his assistant hates him.
But it was all worth it: The Division of Tax Appeals ruled in favor of the Big R, taking 77 pages to do so, but keeping almost $27 million in his pocket. So those “meticulous efforts,” under which “any day the petitioner was physically present in New York City, even for five minutes, was a ‘New York City’ day unless he was in transit between two points outside New York City,” gave one crochety old man a very satisfying victory.
In Tax Case, 4 Days Save Robertson $27 Million [WSJ]
Julian Robertson Has Troubles With Car Service, Voice Mail, Wife [Daily Intel]
Heeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeere’s
Gregie!
Where is Greg Michaels and what have you done to him?
Shazbot, you’re starting to grow on me.
@1 – This is far above Greg quality. Not Bess-level, but the kid’s a rookie.
I used to work for another huge fund manager. NYC days are no joke. The tax people keep track of the days very precisely. The consequences are that severe, so these managers are very careful about it.
wait, is this groundhog day? didn’t this news break yesterday? what gives shazumms?
I know from experience the NYC Tax Department will demand phone records, credit card statements, and anything else they think that will give a clue as to your whereabouts. It’s a frickin’ nightmare.
I’m glad JR stuffed NYC DOF.
@tax chicky – as a nyc resident, I’m not so happy (not that I’m a fan of the NYC DOF). but how do you think they are going to fill that gaping hole left from JR’s end around???
Only bitches pay taxes.
-Unpaid PE intern
Greg
In 2010 I’m going to establish a residence for you in NYC. Then I’m going to establish a massive paper trail to demonstrate that you don’t actually live here. In the end you won’t owe city taxes.
Not Jeff Macke but a fan of his work
@8 Cluzo
Alex – What is the Metropolitan Commuter Transportation Mobility Tax?
Careful fella, I absolutely DO NOT hate my boss. Yes he annoyed me with the endless reminding but if you read the full testimony you will find that I annoy him right back ;-)
@8 why are you an NYC resident? You know they will fill that gaping hole by raiding your wallet since spending cuts are apparently impossible.
@cluzo
Dangerous to make postings about filling huge gaps on DB. Someone is bound to make a Barwny Frwank joke at your expense.
@ABS
Now you’re talking my language.
He’s got it backwards. You get in good with Uncle Sam (and uncle Bloomberg) and lurk in the shadows until hoi polloi is ready to buy mortgages again… Hahahaha!
-Evil Banker
isn’t 183 X 2 = 366 which means that he did spend more than 1/2 of this time in NYC?
@16 congratulations you are qualified to run my soon to be launched hedge fund.
-John W. Meriwether
@16
You are going to make pull the tax code on you!
N.Y. Tax Law §1305(a)(2)defines what constitutes a resident when said individual is not domiciled in the city but maintains a permanent place of abode in the city – said individual spends in the aggregate more than 183 days of the tax year within the city.
Not a majority test, but rather a hardwired number. If days in equal 183 or less, then nonresident status upheld.
2000 was a leap year so 183 = 183
@19/AIG Quant
This has to be some of your best work yet. Very numbery. I’m impressed.
- another former Lehman quant
You see? This is why I do not get EZ Pass, Beyotches!!
coincidentally (not ironically) that the 4 days included tax day.
That’s some scholastic read!!