The New York State Department of Taxation and Finance today announced the arrest of Gerald E. Phibbs, Jr., 55. He is accused of failing to remit over $230,000 in sales tax to New York State as required by law. The money was collected from sales at his business, Pinnacle Power Sports, 460 Albany Shaker Rd., Albany, over a two year period between June 2013 and August 2015.

“The law requires New York State businesses to collect sales tax and forward the sales taxes they colect to the State,” said New York State Commissioner of Taxation and Finance Jerry Boone. “When a business collects sales tax from its customers but the owner keeps the money, that is stealing. Such criminal conduct deprives hard-working New Yorkers of valuable public services and puts honest competitors at an unfair disadvantage.”

Phibbs is charged with multiple felonies including Criminal Tax Fraud and Grand Larceny. He was processed at the Colonie Police Department and was being held on $15,000 bail.

A criminal complaint is only an accusation and all defendants are presumed innocent until proven guilty.

Taxpayers who suspect a business is not remitting sales tax can report tax evasion and fraud online or by calling 518-457-0578. The information is kept confidential.

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