Used Car Dealership Pleads Guilty to Tax Fraud

PHOENIX - Attorney General Mark Brnovich in partnership with the Arizona Department of Revenue announced a Phoenix used car dealership pleaded guilty to $119,000 in tax fraud. Jalisco Auto Sales admitted to charging its customers a transaction privilege tax, more commonly known as sales tax, but failed to pay the collected taxes to the Arizona Department of Revenue.

From January 2015 to July 2016, Jalisco underreported the number of cars sold in order to avoid paying taxes. Prior to entering the plea, Jalisco repaid the $119,000 in taxes owed. Jalisco also paid a $34,000 fine and was placed on probation. During probation, Jalisco is also required to accurately file all required tax returns and tax reporting documents and cooperate with any audits initiated by the Arizona Department of Revenue.

This case was jointly investigated by Arizona Department of Revenue and the Arizona Attorney General’s Office.

AZAG Senior Litigation Counsel Mary Harriss prosecuted this case.

Thursday, September 26, 2019