Brooklyn, NY – Six jewelry stores in Brooklyn were busted for offering cash discounts to customers in order to avoid paying state sales tax, officials said Tuesday.
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Store clerks were nabbed after offering undercover officers posing as customers discounts on certain items if they paid with cash, Brooklyn District Attorney Charles J. Hynes said. “For over three years, the stores had underreported their gross sales by more than $12 million, effectively cheating New York State of approximately $1.2 million in sales taxes,” Hynes said.
Golden Art Fine Jewelry, Crystal Sparkse and Pavillion Jewelers are all fighting the charges.
C&S Jewelers, Valentino Jewelry and Seville Jewelers have pleaded guilty and repaid the money.
Investigators nicknamed the sting “Operation Bracelet” which is part of an ongoing investigation that resulted in three convictions last year.
All these goodies that King Obama is doling out dont come for free. Get ready for more of this!
Obama is not a king. Michael I (Bloomberg) is king of NYC
had underreported their gross sales by more than $12 million, effectively cheating New York State of approximately $1.2 million in sales taxes,” Hynes said. He oviously doesnt know math. Sales tax on $12 million dollars is only $1,005,000.00
Its no wonder our govt looks the way it does. Hynes is a liar !!!! I bet it was less than $12 million.
Its about time. this will happen to more and more stores. its time for all the mom and pop stores everywhere to clean up their act with the discount for cash sales tax garbage
What goes around comes around. If many people cheat NYS out of a lot of money, then the state must ask for more federal dollars.
Obey the law.
I don’t know why you people have such issues with this.
what r we supposed to do- we cant afford sales tax-its rediculously high, THANKS TO BLOOMBERG- REMEMBER ELECTION YEAR
And how does the DA know how much was under reported? Another guess and assumption?
Its not the stores. Its the customers that demand it.
How does giving a cash discount prove you underreported yor sales?
Anonymous Says: Its about time. this will happen to more and more stores. its time for all the mom and pop stores everywhere to clean up their act with the discount for cash sales tax garbage
Reply »
Well, the clean up should include businesses in homes and basements, that would even the playing field for stores to compete on goods and service, not on cheating.
Cash discount is often an incentive to not use credit cards, it does not imply anything crooked.
I dont knw who fault it is, but all these taxes are getting harder and harder to pay. Soon no one will be left in brklyn.
I lost last week a $17,500 furniture sale because my competitor sold it without sales tax….If the state would crack down on every store they can reduce the rate and NOT increase……Now if you go shopping and asking to pay with cash and the store keeper gets caught U bet they will haunt the customer where he took the $17,500 from…
another reason to shop in new jersey and chase all buissness out of new york maybe raise the tax rate another 10 percent to corrispond to our unemployment rate
First of all (reply to #18 ), charging a different price for cash vs credit card is ribbis, and let’s not kid ourselves about why they like cash. Second, not charging tax is unfair to the competition who IS charging tax (I know what you’re thinking … Everyone does it). Third, and most important, THIS IS A HUGE CHILLUL HASHEM!!!
The law is the law. Pay the tax or don’t be in business. We don’t need more crooked businessmen cheating the system and forcing everyone else to pay!
You all complain about taxes in NY… so LEAVE. NY is a communist cesspool that will tax and tax and tax until there is nothing left! Why anyone actually CHOOSES to live in NY is beyond me!
I think i’m getting choked its about time, i stop working and start living on the city/state.
You got it mixed up.What goes around comes around. If NYS cheats people out of THEIR hard earned money, then the people fight for whats theirs
Whether it’s federal, state, or local taxes, you and I are ultimately the ones paying the price for tax evaders.