Tax Assessment Reduced by $52 Million; Steel Mill Recovers $12 Million in Dispute
Client: Manufacturer of Specialty Steel Products
Challenge: Prepare Self-Contained Appraisals; Provide Litigation Support; Testify as Expert Witnesses
A well-known manufacturer of specialty steel products chose AccuVal as their expert to provide appraisals and litigation support in an intense and visible tax battle involving the local school district. To address the $68 million dispute, AccuVal prepared appraisals of specified machinery and a one-million-square-foot manufacturing facility. When the matter went to trial, AccuVal supplied six days of expert testimony and strategic assistance with analysis of the opposition's valuation arguments.
AccuVal Approach
AccuVal began work in this tax challenge by completely immersing itself in the facts of the case. Once strategy was set, experts with extensive knowledge of the steel industry spent months onsite at the mill reconstructing asset records from archived files and performing very detailed inspections of the assets. Then the market for these assets was researched internationally to find the best and most comparable market evidence to support accurate and defensible valuation conclusions.
Tax law in the State of New York dictates that valuation conclusions be submitted in a self-contained appraisal report. As a result, AccuVal prepared a 21-volume document containing thousands of pages of compelling market evidence. AccuVal also reviewed the opposition's appraisal, identifying myriad flaws that debased the validity of the conclusions presented.
Despite numerous attempts to reach an amicable settlement, the matter went to trial, and AccuVal presented its evidence over six straight days of direct testimony and cross-examination. AccuVal's work proved impenetrable, and the strength of the appraisals positioned the steel producer to win the entire $68 million dispute, without compromise. But instead, recognizing the important role the company played in the community, the dispute was voluntarily settled for a lesser amount.
Bottom Line: Tax Assessment Reduced by $52 Million; Taxpayer Recovers $12 Million; Company Realizes Tax Savings of More Than $2 Million Annually
AccuVal's expertise in the steel industry, in-depth knowledge of the underlying assets, and skill developing important details that form the foundation of a winning argument positioned the client to win one of the largest tax disputes in New York history.
The AccuVal AdVantage™
The ability to construct winning strategies. The capacity to dig for important details. An integrated understanding of the steel industry. The world's largest database of transaction information. Seasoned expert witnesses. The ability to communicate complicated matters in simple and compelling terms. That's The AccuVal AdVantage™ at work.
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