Washington Restarant Owners Sentenced In Tax Evasion Scheme

SEATTLE, WA — A Kent couple was sentenced in federal court Thursday after admitting they used software to avoid paying taxes on cash sales at their Thai restaurants.

According to the U.S. Attorney's Office, Chadillada Lapangkura and Pornchai Chaiseeha pleaded guilty to conspiracy charges in August after federal authorities discovered they had hid more than $1 million in income at Bai Tong restaurant locations in Washington and Oregon.

Prosecutors said illegal "tax zapper" software, which removes sales records of cash purchases, helped conceal earnings at locations in Redmond, Tukwila, and Bend, Oregon, between 2010 and 2016. The resulting tax loss was estimated near $300,000.

"Use of this 'tax zapper' software not only cheats on state and federal taxes, it gives a business an unfair advantage over competitors who play by the rules," U.S. Attorney Brian Moran said in a statement.

Aside from using the software, the U.S. Attorney's Office said the couple used cash to pay employees off the books and avoid employment taxes. The judge ordered them to pay a combined $17,500 in fines. The couple has already paid $299,806 in taxes resulting from the case, and the IRS may add other penalties in the future.

Lapangkura was sentenced to six months in prison, and Chaiseeha will serve four months. Both must also complete 80 hours in community service. The U.S. Attorney's Office said the prison terms will be staggered since the couple has young children at home.