by Cris Italia
The Davis Street resident plead guilty on charges that he stole more than $150,000 in sales taxes that he collected, but failed to pay the state. Attorney General Eliot Spitzer and State Department of Taxation and Finance Commissioner Arthur J. Roth announced the sentencing on Jan. 9.
"While the majority of New York business owners comply with state laws and regulations, there are those who break the law for their own gain," Spitzer said. "My office will continue to work with the Department of Taxation and Finance to prosecute those business owners who fail to comply."
Muhammad's charges stem from his failure to pay the state sales taxes he collected from customers at the two Lily's Food Corp. stores he operated at 403 Merrick Road and 3015 Long Beach Road in Oceanside. Between June 1995 and February 2001, Muhammed under reported his taxable sales by more than $1.5 million. In an attempt to cover up his fraud, he then submitted false tax returns to the state.
Muhammad was charged with grand larceny in the third degree, a Class D felony. Along with his sentence he was ordered to pay a $25,000 fine and $150,000 in restitution. The Nassau County Court also required Muhammad to execute a confession of judgment in the amount of $297,631.60, which included the interest and penalties Muhammad owed to the Tax Department.
"Working with prosecutors across the State, we intend to track down tax evaders in order to ensure the integrity of the tax system," Roth stated. "We will also ensure that honest taxpayers do not pay more than their fair share."
