Mount Vernon, WA – A Mount Vernon auto dealer was ordered to pay the State $240,000 after the business president pled guilty to stealing retail sales tax intended for public services.
According to a July 11th, news release from the Department of Revenue, Khaled E. Saad, President of American Auto & Body, LLC of Mount Vernon entered a plea of guilty on behalf of the corporation to first-degree theft on June 23rd, 2017 in Skagit County Superior Court. Saad had been accused of collecting retails sales tax and not turning it over to the state.
The court ordered the corporation to pay $240,000 to Washington State Department of Revenue and $500.00 for a victim penalty assessment. The $240,000 judgement included assessed sales taxes the corporation did not remit and penalties and interest according to the release.
The State Attorney Generals Office referred the Washington State Department of Revenue to audit American Auto & Body’s records from March 1st, 2013 through December 31st, 2015.
The audit showed that Saad was vastly underreporting his corporation’s income and had not remitted to the state at least $145,512 in retail sales tax.
Businesses engaged in the sale of retail goods and personal property in Washington State are required to collect state sales tax from customers and hold it in trust until it is returned to the state. Collecting, but not remitting retail sales tax is considered theft under Washington State Law.
Retail Sales tax is the largest source of state revenues, supporting vital services that benefit Washington’s residents and the economy. The Department of Revenue collected $22.4 billion in tax revenues for Fiscal Year 2016. These funds were used to support education, social services, health care, corrections, public safety, natural resources conservation and other public services.
Information Provided by Department of Revenue July 11th, 2017 Press release.
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