July 25 A former employee of Vanguard Group Inc
has filed a whistleblower lawsuit against Vanguard in New York,
claiming the company avoided paying federal and state taxes, The
Wall Street Journal reported.
The civil suit, which was unsealed in the Supreme Court of
New York on Friday, alleges that Vanguard, the largest U.S.
largest mutual fund company, has been operating an illegal tax
shelter for around 40 years, the Journal said, citing a copy of
the complaint. (on.wsj.com/1xdo5RR)
The former employee, David Danon, alleges that Vanguard
avoided $1 billion of U.S. federal income tax and at least $20
million of New York tax over the last 10 years, the newspaper
The suit also claims that Vanguard filed false returns in
New York for 2011 and 2012 by reporting "artificial income," the
Danon is seeking all costs of filing the lawsuit and 15
percent to 30 percent of any money recovered by state and local
governments, the Journal said.
"We believe that this case is without merit, and we intend to
defend the matter vigorously," a Vanguard spokesman said in a
emailed statement to Reuters.
(Reporting by Abinaya Vijayaraghavan in Bangalore; Editing by