Savile Row tailor Huntsman to pay $250,000 in US tax settlement

By

Barbara Santamaria

Published
Jul 11, 2018

Bespoke suit maker H. Huntsman & Sons has agreed a $250,000 settlement with New York Attorney General Barbara Underwood for failure to collect and remit sales tax.

The prestigious tailor, which served as the inspiration for Matthew Vaughn’s blockbuster movie Kingsman, has been organising trunk shows in the US since 2007, during which employees meet with prospective customers to take measurements and arrange bespoke and made-to-measure clothing.

In 2016, Huntsman became the first Savile Row brand to open a store in New York. Open by appointment only, the studio is located at 130 West 57th and is home to Savile Row-trained cutters and bespoke specialists.

Based on these activities, Huntsman was found to have substantial nexus with New York that obliged it to collect and remit New York sales tax. However, the  British company failed to do so for almost 10 years.

According to estimates from the Attorney General office, between January 2007 and November 2017 the brand sold and delivered approximately $1.6 million worth of garments and other goods to customers in New York without collecting or remitting New York State and local sales tax.  

“Out-of-state tailors who come to New York to make sales must play by the state’s rules,” said Attorney General Underwood. “Huntsman did the right thing by cooperating with our investigation and coming into compliance with the law.”

In addition to paying $250,000 in taxes, interest, and penalties for the ten-year period, Huntsman has agreed to several measures, including reforming its invoicing and record-keeping practices.