Hawaiian tour company charged with tax fraud

The Hawaii state Department of Taxation has charged a Honolulu-based tour company $56,000 in fines for filing false tax returns for five years.

According to officials, the owner of Discovering Hidden Hawaii Tours Inc., Leopoldo A. Malagon III, filed false income and excise tax returns between the years 2007 and 2011. The company was ordered to pay $244,000 in back taxes along with a $56,000 fine.

When a company is faced with criminal tax charges such as fraud or evasion, a Hawaii tax attorney can help them negotiate with authorities to set up an agreeable payment plan and will work on keeping their clients out of jail.

Malagon was given five years to pay their back taxes and fines. He was also sentenced to one year probation for fraud.

The tour company has already paid $100,000 in restitution.

Failing to pay taxes or lying on tax returns can create a host of problems. The accused faces incarceration and exorbitant fines. When these individuals or corporations hire a tax lawyer they will be able to get debt relief and stop collection activities.

Tax authorities have the ability to garnish a person’s wages, put a hold on their bank accounts, or put liens on any property of value. Companies may also be audited, which often requires professional help.

Unpaid taxes or fraudulent tax returns often carry heavy fines and penalties. A tax attorney can stop collection activities, help with audit problems, and develop a repayment plan that won’t cause undue financial hardships for the individual or company.