Grant Woodman (AGO)
Robert R. Bliss (DOR)
Attorney General Martha Coakley's Office Announces the Arraignment of a Corporation and its President Connection with Allegedly Not Paying Over $25,000 in Taxes
BOSTON - Attorney General Martha Coakley's Office announces that a Massachusetts corporation and its president were arraigned in Boston Municipal Court in connection with failing to report the taxable sales on cigarettes and other tobacco products and falsely reporting gross receipts on its corporate excise tax return. Magan Patel, age 53, of Hampden, was charged with Making or Subscribing False Massachusetts Sales Tax Returns and Making and Subscribing to False Corporate Tax Returns (4 counts). Narnarayan Corporation was charged with Delivering False Sales Tax Returns, Aiding and Assisting the Preparation of False Sales Tax Returns, and Aiding Assisting the Preparation of False Corporate Excise Tax Returns.
Patel is the president of the Narnarayan Corporation (Narnarayan), a Massachusetts corporation which has owned and operated Hampden Mini Mart (Hampden) since February 2004. According to authorities, during the relevant time period Narnarayan filed sales and use tax returns for Hampden for each month.
According to authorities, an investigation by the Massachusetts Department of Revenue (DOR) determined that from 2004 through 2008, Hampden's purchases of taxable goods exceeded the taxable sales reported on Narnarayan's sales tax returns. The discrepancies were primarily caused by Narnarayan's failure to account for its taxable sales of cigarettes and other tobacco products. Under Massachusetts law, sales of cigarettes and other tobacco products by retailers must be reported as taxable sales and vendors are required to accurately report taxable sales on sales tax returns. Authorities allege that from February 2004 through April 2008, Narnarayan and Patel willfully underreported the taxable sales of Hampden by more than $500,000 and underpaid sales tax due to the Commonwealth by $25,476.23.
According to authorities, further investigation by DOR determined that Narnarayan and Patel allegedly underreported the gross receipts on the corporation's Massachusetts Corporate Excise Tax Returns for the years 2004 through 2007.
Narnarayan and Patel were arraigned yesterday in Boston Municipal Court at which time each entered individual pleas of not guilty. Patel was released on personal recognizance. Narnarayan and Patel are due back in court on April 13, 2010, for a pre-trial conference. Boston Municipal Court Judge Thomas Horgan presided over the arraignment.
This case is being prosecuted by Assistant Attorney General Michael Pine of Attorney General Martha Coakley's Corruption and Fraud Division with assistance from investigator Christine Slingerland of DOR's Criminal Investigations Unit.