Long Island Car Dealership Failed to Pay $160K in Sales Tax: DA

The manager of a Uniondale car dealership accused of failing to pay nearly $160,000 of sale tax his company collected was arraigned Wednesday by Nassau County District Attorney Investigators.

Evans Raphael, 40, of Lloyd Harbor, and the company Uniondale Auto Mall, Inc. both face the following charges:

• Second-degree grand larceny
• Four counts of third-degree criminal tax fraud
• Three counts of fifth-degree criminal tax fraud

A New York State Department of Taxation and Finance review reports the Uniondale Auto Mall earned nearly $2 million in sales and collected a significant number of sales tax during a four-year period, but did not report any sales to the IRS, the DA reports.

From Jan. 1, 2010 to Dec. 31, 2013, Uniondale Auto Mall allegedly charged customers sales tax on their vehicle purchase and kept that money, calculated to be $159,063.38, instead of remitting it to New York State.

Raphael, who ran the daily operations of the dealership, failed to file quarterly New York State sales tax returns for each of the 16 quarters from Jan. 1, 2010 through Nov. 30, 2013, the DA says.

According to the DA: “Half of the sales tax collected belongs to Nassau County and lesser percentages of the sales tax collected belong to Suffolk County and New York City. Sales tax on automobiles in New York State is payable to the county where that automobile is to be registered."

Uniondale Auto Mall serviced mostly Nassau residents, but had some Suffolk and New York City customers as well.

Raphael and the dealership are due back in court on Friday. He was released on his own recognizance.

“Businesses that pocket sales tax are stealing from our county and our state,” Singas said in a press release. “When customers pay sales taxes they must be sure that the money is going to provide vital government services.”

Raphael faces up to 7 ½ to 15 years in prison and a fine of up to $5,000 or $318,126.76 (double the gain from the alleged crime) if convicted of the top charge.

The DA says the dealership and Rafael are both liable for the money and any disposition will include full restitution to the New York State Department of Taxation and Finance, which partnered in the investigation.

Image via NCDA