Restaurant Law Blog

Saturday, June 4, 2011

Midtown Subway & Papa John’s Restaurant Owner Pleads Guilty To Tax Fraud And Admits To Stealing More Than 3.4 Million Dollars In Sales Tax Revenue.

Ramesh Bhatia, is the 65 year old owner of a Subway and Papa John's Restaurant located in Midtown Manhattan.  According to the New York State Department of Taxation and Finance, Ms. Bhatia admitted to stealing $337,000 in sales tax revenue from 2004 through 2010 and having filed a false New York City corporate tax return in an effort to intentionally defraud the City out of $76,000.  According to District Attorney Cyrus R. Vance, Jr., Bhatia will serve thirty extended weekends in prison and will be liable to repay the City and State the 3.4 million they calculate that he swindled over the past seven years. 

 "The Department is pleased with the joint investigations that we have been able to work with Manhattan District Attorney Cyrus R. Vance, Jr. and his office.  These are just a few of the cases that we have been able to work together and these efforts should send a strong message that consequences await those who violate New York State tax laws," said Commissioner Mattox.  "Honest taxpayers lose out when someone evades paying taxes that are owed.  The Department and local prosecutors will continue working diligently to identify those who do not comply with the tax laws and hold them accountable."  NYS Department of Taxation and Finance is actively targeting Restaurants who fail to pay their sales tax.

James D. DiPasquale, Esq.

DIPASQUALE LAW GROUP

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