California Delinquent Sales Tax Offenders Named, Three From Santa Monica
Posted Mar. 10, 2014, 9:25 am
Parimal M. Rohit / Staff Writer
The California State Board of Equalization (BOE) published its quarterly list of the 500 largest delinquencies of sales and use taxes on Tuesday, revealing more than half a billion dollars that remain unpaid from taxpayers.
Three entries on the list were for companies or individuals based in Santa Monica, owing more than $2.75 million in sales and use taxes to the State.
According to the BOE, the tax delinquencies on the updated list total $514.9 million through the first quarter of 2014.
Token Automotive, Inc., which owned the former Santa Monica Mitsubishi at 1501 Santa Monica Boulevard, was the biggest culprit in the City. According to the BOE, Token Automotive owes the state $1,175,304.66 in sales and use taxes. The company was issued its first lien on the delinquency on September 30, 2005.
Second on the list is 17th Street Café at 1610 Montana Avenue, which reportedly has a delinquency of $766,293.61 and was issued its first lien on April 29, 2009.
According to the café’s website – www.seventeenthstreetcafe.com – the eatery is “undergoing a transformation” with new ownership; the website states the original owner is returning.
The BOE list did not state the name of an individual who was responsible for the delinquent amount.
Listed as an individual, Payman Peter Ahoubim has a sales and use tax delinquency of $476,421.83 and was issued his first delinquency on September 11, 2009, according to BOE. His address was listed at 1918 Lincoln Boulevard in Santa Monica.
Also listed with the same address and delinquency amount was California Auto Express, Inc.
A Google search reveals Ahoubim might have served as president of several automotive-themed groups, including L.A. Repo Depot, Inc., Quality Car Connection, Inc., Ontime Lenders Incorporated, and Sierra Motor Sports, Inc.
The largest delinquency reported on the BOE list was Bruce McNall, the former owner of the Los Angeles Kings who reportedly defaulted on a $90 million loan and was convicted of fraud and conspiracy. According to the BOE, his delinquency is $7.942,333.97 and has been outstanding since May 25, 1994.
In nearby Malibu, a business once operating as a masonry supply store reportedly owes $1,167,331.62. Two delinquencies were reported in the Westwood area, totaling nearly $1.2 million.
On the other end of the spectrum, the smallest delinquency on the list was $432,328.24 for an automotive group in the San Francisco Bay Area.
“The increased publicity generated by this list is intended to create an incentive for them to pay their taxes,” BOE chairman Jerome Horton stated. “If the taxpayers on the list continue to ignore their liabilities, the public list provides a powerful incentive to play by the rules.”
Only debts of $100,000 or larger are listed; the listed taxpayers are given 30 days notice their names or businesses will be made public on the list.
The BOE began compiling and publicly releasing this list of delinquent taxpayers since 2007. In 2011, the list expanded from 250 delinquencies to 500.
Though none are from Santa Monica, there were 44 new delinquencies combining for $41.4 million added to the March 4 list, the BOE stated.
The BOE states the publication of the list of the top 500 delinquent sales and use tax accounts has resulted in $10.21 million in payments received by the State from 121 taxpayers who came forward to resolve the debt. Of those 121 accounts, 100 are making payments and 21 have paid off their respective debts in full.
To view the complete list of delinquent accounts, visit: www.boe.ca.gov/cgi-bin/deliq.cgi. Questions about the list can be directed to the BOE at 916.323.8624.
BOE is required by State law to publish quarterly the 500 most delinquent accounts. Names are only removed if addressed through payment arrangement, bankruptcy, litigation, or appeal.