Rihanna Files Suit, Alleges Financial Mismanagement Resulted in Tax Audit
She claimed, however, in a lawsuit filed last week against accounting firm Berdon LLP together with accountants Michael Mitnick and Peter Gounis, that she has actually
sustained tens of million dollars in losses over the past few years as the result of bad bookkeeping and “gross mismanagement.”
The singer, whose real name is Robyn Rihanna Fenty, alleges that
her “Last Girl on Earth” tour which featured opening acts Ke$ha and rapper Nicki Minaj
lost money on paper despite healthy ticket sales. The losses are related, she claims, to her accountants’ practice of taking a hefty commission on revenues (reportedly nearly a quarter of sales) as payment for their services. That practice, which was described as “exorbitant and excessive”, as well as the failure to keep proper documentation, allegedly resulted in an audit with the Internal Revenue Service (IRS).
The cost of defending the tax audit has apparently been significant. The audit is ongoing and there’s no word yet on the total tax or legal bills as a result of the examination. I think it’s safe to say that it’s substantial enough to raise some eyebrows – and some tempers – considering the timing of the lawsuit.
Source:
http://www.forbes.com/sites/kellyphi...-in-tax-audit/
This is from 20 days ago, but I never heard of it.I'm sorry if this AP.
