The New York State Department of Taxation and Finance today announced that a Grand Island, NY resident and business owner pleaded guilty to failing to pay sales tax to the State for several years.

Loay M. Abdellatif, 45, of 1320 E. River Rd., was charged with one felony count of criminal tax fraud for collecting $38,470 in sales tax from his customers, then failing to remit those funds to the State as required by law.

Appearing before Niagara Supreme Court Judge Richard C. Kloch on August 7, Abdellatif paid the tax liability of $38,470 for the years 2009 and 2012. He is scheduled for sentencing on October 2 and faces up to seven years in state prison.

The defendant is the owner and operator of Performance Autosound & Accessories, Inc., doing business as Audio One at two locations, 5677 Niagara Falls Blvd. in Niagara Falls and 266 S. Transit Rd. in Lockport.

This case was investigated by the Tax Department's Criminal Investigations Division and prosecuted by the Niagara County District Attorney's office.

Each year, New York State businesses collect nearly $25 billion in sales tax from their customers. Businesses transmit the funds to the Tax Department for state programs and distribution to local governments.

Taxpayers who believe a business hasn't collected the proper sales tax, or has collected it but failed to remit the funds, can report tax evasion and fraud online at the Tax Department's Web site or by calling 518-457-0578. The information is kept confidential.

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