The Bush administration did not give any comment on the US Supreme Court decision, which rejected the contention of India and Mongolia that they are immune to paying taxes on their properties in the United States.
"I have put that question to our lawyers and they have yet to produce an answer," State Department spokesman Sean McCormack told reporters on Thursday, after the decision was given by the Court.
For India, which was "immune" from paying over $16 million in taxes on properties it owns in New York, the decision may cost $37 million, when the Court supported decisions by lower courts that the American judiciary can decide this issue.
New York City is also demanding to pay $2.1 million from Mongolia for their missions to the UN.
The Supreme Court rejected the claim by India and Mongolia that they are immune from paying the taxes on the properties which are partly used by their diplomats.
New York's corporation counsel Michael Cardozo, who argued the case before the Supreme Court, said: "now India as well as other countries, know the city 'means business.''
The city does not give names of other countries that have not paid taxes, but give a figure of $100 million as "a conservative estimate of what is currently owed by several countries."Â
Lawyer Andrew Odell said:"ÂThe concept of diplomacy is that what's good for you is good for me. There will be some reciprocal act that takes place vis a vis US diplomatic installations in India"Â.
Generally under Foreign Sovereign Immunities Act, the jurisdiction of US courts does not extend to other countries' governments. But this case is regarded as an exception, regarding "rights in immovable property"Â.
The Supreme Court said: "the exception applies in the New York case. The city seeks to establish the validity of tax liens on the buildings"Â.
Justice wrote that the case "is a dispute over a foreign sovereign's tax liability. If Congress had intended the statute to waive sovereign immunity in tax litigation, I think it would have said so."Â- Alla Harutyunyan for HULIQ.COM
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