NEW YORK, May 20, 2016 /PRNewswire/ -- Kerrisdale Capital, a private investment firm, announced that it had sent a Form 3949-A to the Internal Revenue Service outlining its evidence that DISH Network Corporation is violating tax law by improperly deducting approximately $1 billion per year in amortization expenses related to its spectrum licenses. Under the Internal Revenue Code, and as confirmed by case law, such amortization is only allowed when spectrum is actively used for "the conduct of a trade or business." Since DISH has, to date, done nothing but fruitlessly warehouse its spectrum, Kerrisdale believes it is not entitled to any tax deductions.
A copy of the form submitted to the IRS can be found at http://kerr.co/dish-tax.
"Not only has DISH harmed the public interest by obtaining regulatory forbearance under false pretenses so it can hoard spectrum; it has added insult to injury by wrongfully using this spectrum to slash its tax bill to the tune of billions of dollars," said Sahm Adrangi, Chief Investment Officer of Kerrisdale Capital. "This represents yet another way that DISH has crossed the line in pursuit of profit – and yet another example of what the U.S. Department of Justice has recently called 'DISH's extraordinary hubris.'"
Conference Call Schedule
Sahm Adrangi, Chief Investment Officer, will host a conference call today, May 20, 2016, at 4:00pm ET to discuss the company's letter.
To participate in the call, please dial (888) 390-3983 (United States and Canada) or (862) 255-5354 (international) and reference the Kerrisdale Capital conference call.
About Kerrisdale Capital
Kerrisdale Capital Management, LLC, is a fundamentally-oriented investment manager that focuses on long-term value investments and event-driven special situations. Kerrisdale has a short position in DISH and stands to benefit if its share price falls.
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SOURCE Kerrisdale Capital