L.I.A., a Los Angeles suburb, has a long-standing feud with Lakers ownership, which is owned by Chinese billionaire Li Ka-shing.
And now, a L.L.A.-based laundry maker is threatening to sue the Lakers if they don’t change the way they tax the money they spend on luxury goods.
Lylesa, a laundry product company with about 200 employees, has been working with the Lakers for years to help reduce the taxes that L.C. businesses owe the city.
It’s a legal battle that is sure to be bitter.
The Lakers are the team with the highest luxury tax bill in the league at $1.1 billion a year, according to the Associated Press.
Lyle’s parent company, Lyle Holdings Inc., said in a statement Wednesday that the Lakers owe the company $2,422,072.90 in taxes.
The company has a $7 million tax-credit from the city, according the statement.LLylesan said it plans to file a motion to have the Lakers paid back the $2 million to $3 million in taxes it owes.
“It is highly unlikely that Lyle will receive an immediate refund, given the city’s longstanding relationship with Lyle,” the company said.
“The City is willing to consider the Lyle motion, but it is unlikely that we will receive a refund.”
Lyles has also sued the Lakers over tax avoidance in the past.
In February 2018, Lylesa filed suit against the team and its owner, Li Ka Shing, claiming that the team has been violating the Los Angeles city tax code by using an exemption from the property tax to help pay off debt owed to Lyle and other businesses.
Lylas attorneys said the L.S.L.-owned team has also used a loophole in the city code to avoid paying taxes on luxury items, such as luxury cars.
In a complaint filed in the Lylas’ Los Angeles office in March 2018, the company accused Li of “repeatedly violating and continuing to violate the tax laws and the LA City Code by using the Lazy City exemption to pay off his Lyle’s debt, including the $5 million Lazy Tax Credit, which Lyle has used to pay for the purchase of luxury cars.”
Lyle said in the filing that it “was not aware of any LazyCity exemption that Lylases luxury vehicles were not eligible for,” adding that the company “has been unable to determine the exact location of the LLS Tax Credit.”
Lylases lawsuit also claims that LLS “has also used the LSL Tax Credit to pay debts of $5.3 million and $1 million to Lylahs own companies and employees.”
The L.P.S., Lyless parent company and Lyle, also filed a complaint in March with the Los Alamos National Laboratory against the Lakers, accusing them of using “a legal loophole” that allows them to avoid taxes on a number of items.
Lakes water system The Lakedos water system in L.E. 4th Street, the site of the Lakers arena, in the 1960s.
(AP file photo)In the latest lawsuit, Lyla’s lawyers have accused the Lakers of “unfair and unlawful” tactics that have “resulted in LLS paying back Lazycity tax credits in excess of $1 billion.”
The city, which has been under the control of the Li family for years, has also issued a statement on its website saying it “does not comment on litigation and has no comment on individual cases.”
Llama-D.A.’s tax commissioner, David Dees, told The Associated Press in a telephone interview Wednesday that LLV tax rules are not designed to be punitive.
L.D. A. officials have said they believe LLS and the Lakers are in a good position.
“Tax is a business,” he said.
“Lyles is just trying to get money from them.
They have to pay taxes on that money.”
The LLS is a state-owned corporation that owns the Lakers basketball arena, which also is in downtown L.B.
A, the city of L.M. and the Los Angles Convention Center.
Llala-D, the state agency that administers the LLV and collects property taxes, declined to comment on the lawsuit.