Criminal Tax Media Releases

HONOLULU ARCHITECT CHARGED FOR FAILING TO FILE HIS GENERAL EXCISE TAXES
Released:  August 14, 2001

Tax Director Marie Okamura announced that a complaint has been filed against James A. Schmit for failing to file his general excise tax returns for the years 1996, 1997, and 1998. 

The penalty for failing to file tax return is a misdemeanor and upon conviction one could be imprisoned for a period not to exceed one year and/or a $25,000 fine for each year. 
 
Tax Director Okamura continues to encourage taxpayers to voluntarily file their tax returns.  The department will generally not initiate a criminal investigation when taxpayers voluntarily come forward to report their failure to file or other omissions.

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RB TAX RETURN PREPARER PLEADS "GUILTY" TO TAX CHARGES
RELEASED: August 13, 2001

Tax Director Marie Okamura announced that on August 13, 2001, Ms. Dina Caleda, a tax return preparer for RB Tax Service pled guilty to 6 felony counts before Circuit Court Judge Michael Town.

In August 2000, Ms. Caleda was charged by a Honolulu grand jury for 47 misdemeanor and felony tax violations, to wit, not filing her won annual general excise and net income tax returns, filing a false income tax return, theft in the 2nd degree, theft in the 1st degree and 38 felony counts for aiding in the preparation of false income tax returns for her clients.

In a plea agreement, Ms. Caleda pled guilty to six felony counts of aiding in the preparation of false income tax returns.  In two of the counts, the returns prepared claimed the Foreign Earned Income Tax Exclusion under the premise that Hawaii was not a State.  The remaining four counts were returns where the itemized deductions claimed were excessive and fictitious.

In the plea agreement, the government will recommend a sentence of incarceration to not exceed six months and a fine of up to $5,000 per count for a total fine of $30,000.  The plea agreement also calls for Ms. Caleda to cooperate the with tax officials to file her own delinquent tax returns.

Sentencing has been scheduled for Nov 6, 2001 before Circuit Court Judge Michael Town.

Tax Director Okamura continues to encourage taxpayers to voluntarily file their tax returns.  The department will generally not initiate a criminal investigation when taxpayers voluntarily come forward to report their failure to file or other omissions. 

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