The California Department of Tax and Fee Administration (CDTFA) announced today that over the past several weeks twelve illegal cannabis retailers in Los Angeles and San Bernardino counties were served tax warrants with the assistance of the California Highway Patrol (CHP).
The CDTFA seized nearly a million dollars in illegal cannabis products that will be destroyed and approximately one hundred thousand dollars in cash that will be applied to tax liabilities. The investigation was a joint effort between CDTFA investigators and the CHP.
“The CDTFA’s collaboration with the CHP is an important deterrent to tax evasion,” states CDTFA Director Nick Maduros. “Tax evasion unfairly shifts the burden onto all other taxpayers and makes it tough for those businesses that are playing by the rules to survive.”
Under the California Revenue and Taxation Code, any person who willfully evades or attempts to evade the reporting, assessment or payment of the cultivation tax, the cannabis excise tax, or the sales tax that would otherwise be due is guilty of cannabis and sales tax evasion. Violators are subject to fines and/or jail time. The CDTFA Investigations Bureau administers the tax enforcement and criminal investigations program. The Bureau plans, organizes, directs, and controls all criminal investigative activities for the various tax programs administered by the CDTFA. Its goals are to deter tax evasion, identify new tax fraud schemes, and actively investigate and assist in the prosecution of crimes committed by individuals violating the laws administered by the CDTFA.
For more information visit: cdtfa.ca.govCalifornia Department of Tax and Fee Administration
July 8, 2020