Used auto dealerships to profit and report A father and son team operating two used car dealerships in Hollis Queens has been charged with $500,000 state sales tax for failing to report sales and neglecting to turn over funds collected as sales tax.
The defendants were identified as Yunas Khan, 52, and his son, Tabraiz Khan, 27 and are both being held pending arraignment in Queens Criminal Court.
Yunas has been charged with two counts of second-degree grand larceny, two counts of second degree criminal tax fraud, 26 counts of first-degree offering a false instrument for filing, one count of first degree scheme to defraud and one count of second degree scheme to defraud. If convicted he faces up to 15 years.
Tabriz Kahn was charged with one count of second-degree grand larceny, two counts of third degree grand larceny, two counts of third degree criminal tax fraud, four counts of first-degree falsifying business records, four counts of first-degree offering a false instrument for filing, one count of first-degree scheme to defraud. If convicted he faces up to 15 years in prison instrument for filing, one count of first degree scheme to defraud and one count of second degree scheme to defraud. If convicted he faces up to 15 years in prison.
According to the criminal complaint filed against Yunas Khan and Horse Power Horse Power Auto Sales Inc. between December 1, 2007, and November 30, 2010, the defendants, then located at 249-15 Jamaica Avenue (Horse Power Auto Sales in Hollis), allegedly reported sales totaling $2,867,283 with a tax liability of $243,145. A review of records from the New York State Department of Motor Vehicles, however, show Horse Power Auto Sales reportedly had taxable sales of at least $8,203,582 with a true tax liability of at least $703,932. Consequently, a difference of at least $460,786 in taxes were allegedly collected and not remitted to New York State.
Further complaints against Tabraiz Kahn and Car Palace Inc., between September 1, 2010 and May 31, 2011 show the defendants, currently now operating at 91-35 183rd street in Hollis allegedly reported sales totaling $248,835 with a tax liability of $21, 484. A review of records from the New York State Department of Motor Vehicle however shows Car palace Inc. reported taxable sales of at least 41,102,742 with a true tax liability of $97,784 in taxes were actually collected and not remitted to New York State.
By Samantha Geary
