A Honolulu used-car dealer was sentenced last week to a year of probation and a $10,000 fine for not paying close to $400,000 in state income and general excise taxes over several years.
Rong Zhang, owner of Excellent Auto Center Inc. and Excellent Motor Group Inc., also is required to gradually pay the back taxes, according to the state Department of Taxation, which announced the sentencing by Hawaii District Court Judge Leslie A. Hayashi on Thursday.
Zhang willfully failed to file corporate income tax returns and annual general excise tax returns for Excellent Auto between 2003 and 2006. Excellent Motor’s income and general excise tax returns weren’t filed in 2006.
As part of a plea agreement, Zhang has paid $79,600 in owed taxes and will make up another $336,107 with monthly payments of $5,000.
Zhang did not respond to a call seeking comment on Friday.
According to business records, Excellent Auto was incorporated in 1999. The company operates on a small lot at the corner of Kapiolani Boulevard and Kamakee Street. Excellent Motor was incorporated in 2005 and lists an address on Dillingham Boulevard near Honolulu Community College.
The website for both companies lists an inventory of about 90 cars, ranging in price from $4,000 for a 1996 Infinity to $50,000 for a 1997 Ferrari.
Zhang must pay the fine to the state’s general fund. Terms of probation require Zhang to be tax compliant and stay arrest- and conviction-free for a year.
Willful failure to file a tax return is a misdemeanor carrying a fine of up to $25,000 for individuals and $100,000 for corporations as well as a jail term of up to one year or probation.
