A former Hallowell pub owner has been convicted of tax evasion, sentenced to 45 days in jail and ordered to pay $30,700 in restitution.
Augusta resident Krystal Lavallee, 43, was found guilty of three counts of sales tax evasion and one count of theft by misapplication of sales tax on May 19 before the Kennebec County Superior Court, according to a press release from the Maine Attorney General’s Office released Wednesday.
Lavallee operated the former Brews & Views bar and restaurant on Water Street in Hallowell from 2015 to 2017, he said. During this time, shesystematically underreported the company’s sales when filing sales tax returns in Maine, reporting only $37,000 in sales over a period of nearly three years.
Investigators from the Maine Revenue Services Criminal Investigations Unit determined that the pub’s actual sales were 10 times greater than those reported by Lavallee. Overall, she underreported the amount of sales tax collected by more than $24,000, the attorney general’s office said.
Lavallee was ordered to serve 45 days in jail and pay $30,735.94 in restitution, a figure that includes accrued interest, he said. She will also be placed on probation for a year.
“Maine depends on its business owners to deal honestly with the collection and reporting of sales tax,” Maine Attorney General Aaron Frey said in a statement. “I appreciate the hard work of the Maine Criminal Division and Tax Services in securing this conviction.”
Assistant Attorney General Elizabeth T. Weyl handled the case for the Attorney General’s Criminal Division.
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