PHOENIX – A Phoenix used car dealership, Jalisco Auto Sales, pleaded guilty to tax fraud after admitting to charging its customers a transaction privilege tax. The company then failed to pay the collected taxes to the Arizona Department of Revenue.
The transaction privilege tax is more commonly known as sales tax.
According to the Arizona Attorney General’s Office, from January 2015 to July 2016, Jalisco underreported the number of cars sold in order to avoid paying taxes. Prior to entering the plea, Jalisco repaid the $119,000 in taxes owed. Jalisco also paid a $34,000 fine and was placed on probation.
During probation, Jalisco is also required to accurately file all required tax returns and tax reporting documents and cooperate with any audits initiated by the Arizona Department of Revenue.