Maryland nets $3.5 million from audit

A major corporation has paid more than $3.5 million to Maryland to settle claims it avoided state tax laws, state Comptroller Peter Franchot said.

The money was recovered through a "captive" Real Estate Investment Trusts audit, a statement said.

"I am committed to ensuring that everyone pays their fair share, especially in these tough economic times," Franchot said. "The vast majority of Maryland businesses play by the rules, but we will not allow a few large corporations to gain an unfair advantage by flouting our tax laws."

Franchot announced last year that his office would begin auditing corporations trying to avoid paying taxes by using "captive" REIT, whereby companies place their holdings in real estate trusts and take unauthorized deductions.

In October, Maryland received a $10.8 million dollar payment from another unnamed corporation, and the state has a pending $5.7 million assessment in another REIT case, the statement said.