Risk Management

Court Nixes HealthSouth Tax Refund

Court rules that HealthSouth might be due a refund if its overpayment stemmed from honest mistakes rather than criminal misconduct.
Stephen TaubMay 7, 2007

The Alabama Supreme Court ruled that HealthSouth cannot receive a refund on property taxes paid on bogus assets, reported the Associated Press.

The company had been seeking refunds on property taxes it overpaid in 2001 and 2002, the years prior to the uncovering of its massive accounting fraud, according to the AP. The court reportedly ruled that the company might be due a refund if its overpayment was the result of honest mistakes rather than criminal misconduct.

The Supreme Court verdict upheld a decision by the Alabama Court of Civil Appeals, which had upheld a decision by a Jefferson County judge, the wire service reported.

According to the AP, the amount of taxes at stake is less than $1 million.

Meanwhile, last week HealthSouth founder Richard Scrushy — who earlier was required to wear a GPS tracking device when he traveled outside his home area — was ordered to wear or carry the device at all times, reported the The Birmingham News.

Scrushy, who was acquitted of all charges related to his alleged role in the company’s accounting fraud, was convicted last summer on on a number of charges involving former Alabama governor Don Siegelman and is awaiting sentencing. Scrushy has said he will appeal.