Failed to Remit Over $1 Million in Sales and Tobacco Products Tax
IMMEDIATE, Thursday
October 27, 2011
The New York State Department of Taxation and Finance announced today that the owner of a Bronx cigar shop was arrested on October 25, 2011 on felony charges for failing to remit more than one million dollars in sales and tobacco products taxes, and for failing to file New York State personal income tax returns.
Paul DiSilvio, 37, of 2549 Fenton Avenue, Bronx, New York, and his company, La Casa Grande Tobacco, Inc., which had been located within the Arthur Avenue Retail Market in the Bronx, were arraigned on felony complaints in Bronx County Criminal Court. DiSilvio was charged with Grand Larceny in the Second Degree, a class C felony; Criminal Tax Fraud Act in the Second Degree, a class C felony; Attempt to Evade or Defeat a Tobacco Products Tax, a class E felony; and Person Not Appointed as a Tobacco Product Distributor, a class A misdemeanor.
On May 5, 2010, investigators from the New York State Department of Taxation and Finance executed court-ordered search warrants at the Bronx premises of La Casa Grande Tobacco, Inc., 2344 Arthur Avenue, and at DiSilvio's residence. La Casa Grande Tobacco, Inc., which also operated as N.B.R.M. LLC, was a business which manufactured and sold cigars from within the Arthur Avenue Retail Market, over the Internet, and at private functions featuring demonstrations regarding how to roll cigars. DiSilvio was the sole owner of those corporations.
Business records recovered in the search were compared to New York State sales tax returns filed by La Casa Grande Tobacco, Inc. They revealed that between December 1, 2005 and February 28, 2010, the business collected over $168,232 more in New York State sales tax than it remitted to the State, and significantly underreported its total sales on its New York State sales tax filings.
Similarly, a comparison of La Casa Grande Tobacco, Inc.'s business records, including the corporation's New York State tobacco products tax returns, revealed that between December 1, 2005 and February 28, 2010 La Casa Grande Tobacco, Inc. and Paul DiSilvio failed to remit over $924,021 that they owed in New York State tobacco products tax.
DiSilvio, who operated his business despite the fact that his license to act as Distributor of Tobacco Products was revoked, also failed to file New York State personal income tax returns for tax years 2006 through 2009.
DiSilvio faces up to 15 years in prison if convicted of the charges. The defendants are to appear next in Bronx County Supreme Court on January 19, 2012.
New York State Tax Commissioner Thomas H. Mattox urges delinquent taxpayers to contact the Tax Department. The Department offers a Voluntary Disclosure and Compliance Program that can be accessed by taxpayers to correct past returns and avoid both civil and criminal penalties. Information on the program is available on the Department's website at www.tax.ny.gov
Commissioner Mattox also commended Bronx County District Attorney Robert Johnson and Assistant District Attorney Linda Tacoma for their aggressive prosecution of this case.
The defendants are presumed to be innocent unless and until proven guilty.