Published on May 27, 2010 | by LawNews
Prof. Ronald Colombo Comments on County’s Attempt to ‘Pierce the Corporate Veil,’ Hold Nonprofit’s Owners Personally Responsible for Its Tax Liability
On May 18, 2010, Professor Ron Colombo was quoted in the Newsday article: Suffolk to Mega winners: Pay property tax debt. Prof. Colombo discussed the difficulty that Suffolk County will face in attempting to “pierce the corporate veil” and hold the owners of a charitable corporation personally responsible for that corporation’s tax liability.
Forcing the managers of a nonprofit group to pay off a tax debt can be tricky, said Ronald Colombo, professor of corporate and securities law at Hofstra University. He said the Morrisons’ lottery winnings are “not one of the factors you would ever consider in piercing the corporate veil.