Commissioner of Taxation and Finance Thomas H. Mattox today announced that two former Bronx gas station owners pled guilty and have been sentenced for stealing $250,000 in sales tax. 

Following an investigation by the Department’s Criminal Investigations Division, the former merchants were arrested for collecting sales tax from their customers, but never remitting the funds to the State as required by law. 

The defendants have paid back to New York State the $250,000 in stolen funds as well as an additional $225,000 in fines and penalties.  JSD Petroleum Corporation pled guilty to Grand Larceny Second Degree, a felony violation of the Tax Law.  Kuldip Singh Dhillon, 54, and Raspinder Singh, 53 - both of Richmond Hill, NY – pled guilty to Attempted Grand Larceny.  The individuals were co-owners of a gas station located at 1243 East Tremont Avenue, Bronx.   

The case was prosecuted by Bronx County District Attorney Robert Johnson and Assistant District Attorney Nicholas Lewis.

“We commend District Attorney Johnson for his prosecution of this case,” Commissioner Mattox said.  “When customers pay sales tax, they expect it to be used to support state and local government services, not to increase the profit margins of corrupt business owners.  On behalf of consumers and to ensure a level playing field for all businessmen and women, we will continue to aggressively pursue those who attempt to steal sales tax dollars.” 

Between 2005 and 2011, the business, JSD Petroleum, under-reported the number of gallons of motor fuel sold on each of its quarterly sales tax returns, representing a total of $250,000 in stolen sales tax.  For example, one return failed to include more than 155,000 gallons of motor fuel sold to customers.    

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

Over the past year, Tax Department investigations have resulted in prosecutions in more than a dozen cases of significant sales tax evasion by automobile-related businesses, representing more than $4 million in sales tax stolen from customers. 

Taxpayers who believe a merchant hasn’t collected the proper sales tax, or has collected it but failed to remit the money collected to the State, 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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In New York State, 96% of taxes are paid by businesses and individuals who voluntarily meet their tax responsibilities. The remaining 4% is collected through the Tax Department's audit, collections and criminal investigations programs. Through its enforcement programs, the Department ensures fair tax administration for all New Yorkers.