The taxman doesn’t cometh

Published



“Gandhi’s got to go.” That was the sentiment expressed by several D.C. Council members after learning that Natwar Gandhi, the city’s chief financial officer, may have failed to properly implement the Tax Clarity Act of 2001, denying the District more than $100 million in real estate taxes.

The Tax Clarity Act, among other things, removed an exemption provided for refinanced loans used to purchase commercial real estate. It also altered the method for assessing the tax on such transactions. If, for example, an owner held an original loan for $100 million but refinanced for $110 million, the tax should have applied to the entire $110 million. But Jeffrey Mitchell, with Oldaker Law Group, and James Stanton, a lawyer and former congressman, discovered the CFO taxed only the $10 million debt.

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