A DENTAL CORPORATION & OFFICER CHARGED & SENTENCED FOR TAX VIOLATIONS

Tax Director Marie Okamura announced that a complaint was filed against Franklin Kometani and Kometani and Associates, A Professional Dental Corporation for failing to file annual general excise tax returns and for theft of withholding taxes.

On March 12, 2001, a 12 count complaint was filed in the Circuit Court of the First Circuit against Franklin Kometani for failing to file the corporation's annual general excise tax return for the years 1996 (Count I), 1997 (Count III), and 1998 (Count V).  Mr. Kometani was also charged with Theft in the second degree for failing to pay over the withholding taxes on employees' wages during the years 1995 (Count VII), 1996 (Count IX) and 1997 (Count XI).

The corporation, Kometani and Associates, A Professional Dental Corporation was also charged with failing to file its annual general excise tax return for the years 1996 (Count II), 1997 (Count IV) and 1998 (Count VI).  The corporation was also charged with Theft in the second degree for failing to pay over withholding taxes on the employees' wages during the years 1995 (Count VIII), 1996 (Count X) and 1997 (Count XII). 

On March 15, 2001, Circuit Judge Richard A. Perkins accepted a plea agreement where Dr. Kometani pled "no contest" to not filing the corporation's annual general excise tax return for 1997 (Count III) and for not paying over the withholding taxes on the employees' wages for 1996 (Count IX).  The corporation also pled "no contest" to not filing its annual general excise tax return for 1996 (Count II) and for not paying over the withholding taxes on the employees' wages for 1995 (Count VIII).

Pursuant to the plea agreement, Judge Perkins fined Dr. Kometani $10,000 for two counts for a total fine of $20,000.  The corporation was also fined $10,000 for two counts for a total fine of $20,000.  Judge Perkins also accepted Dr. Kometani's deferred acceptance of no contest plea.

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.