SC business owner avoided paying more than $100K in taxes, agency says

A South Carolina business owner was arrested on charges that he evaded more than $100,000 in sales tax over three years by underreporting sales, according to state officials.

Rakesh Ratilal Patel, 41, was arrested by state agents Tuesday on five counts of willful attempt to evade taxes, the S.C. Department of Revenue said in a release. He was placed in the Aiken County Detention Center

Patel is the owner of Ball’s Food Mart in the Warrenville area of Aiken County and Racers Gas in Gloverville, according to the Department of Revenue. Agents say he evaded paying $69,918 in sales tax for the food mart for tax years 2015-2017, and that he reported sales totaling $905,026.

An investigation found that actual sales at the store were about $1,787,907, according to the release.

For tax years 2016 and 2017, Patel reported sales for the gas station totaling $500,302, agents said. But an investigation showed that sales were about $914,128.

Patel evaded paying $33,106 in sales tax for the gas station, according to the release.

In total, Patel evaded paying $103,024 in sales tax to the state, according to the agency.

He faces up to five years in prison and a $10,000 on each charge, if convicted.