ALJ Holds that Executive Changed His Domicile to Paris and Was Not a New York Resident -

A New York State Administrative Law Judge has held that an individual who retired as chief financial officer of Colgate-Palmolive headquartered in New York City in order to immediately move to Paris to be with his wife, a French domiciliary with whom he rekindled a relationship after more than 40 years apart, was no longer a New York City domiciliary. Matter of Stephen C. Patrick, et al., DTA Nos. 826838 and 826839 (N.Y.S. Div. of Tax App., June 15, 2017).

Mr. Patrick was for many years a Connecticut domiciliary. Following his separation and eventual divorce from his first wife, he had briefly moved to and acquired an apartment in New York City, where he held a demanding executive position as CFO of Colgate-Palmolive. After he searched for and located his childhood girlfriend, who was now living in Paris, they decided to marry. Their initial plan was for Mr. Patrick to divide his time between New York and Paris, where his wife lived. However, it soon became apparent that they did not want to be apart for extended periods, and he decided to retire early from his executive position at Colgate-Palmolive at considerable financial cost. He flew to Paris the very next day after his retirement in 2011. He thereafter filed New York State nonresident returns, but the Department took the position that he remained a New York City domiciliary and assessed New York State and City income tax on that basis. A hearing followed, at which Mr. and Mrs. Patrick each testified in considerable detail.