OC Tax Dodger Extradited and Sentenced to Jail

A former Ladera Ranch resident who fled the country after he was indicted by a federal grand jury for providing false and incomplete information to an income tax return preparer was sentenced today to a year behind bars.

Donald M. Baxi, a 69-year-old Canadian citizen formerly residing in Ladera Ranch, was also ordered by U.S. District Judge Percy Anderson to pay restitution of $56,319, according to the Internal Revenue Service.

Baxi pleaded guilty in March in Los Angeles to one count of aiding and abetting in the preparation of a false income tax return.

According to his plea agreement, Baxi was responsible for having the partnership income tax returns of Vintages Wine Bar prepared and filed with the Internal Revenue Service.

For each of the years 2003, 2004 and 2005, Baxi deliberately provided false and incomplete information to his tax return preparer so that VWB's interest income would not be reported to the IRS, according to the federal agency.

During those years, however, VWB received interest income from two separate sources totaling $201,142. The unreported interest income caused a tax loss to the government of $56,319, according to the IRS.

In November 2010, a federal grand jury indicted Baxi on six counts of aiding and assisting in the preparation of false income tax returns. Upon learning of the charges, Baxi fled the United States.

Five years after being indicted, Baxi was arrested by German authorities and extradited back to the United States to face trial.

City News Service