Burnsville restaurant owners are facing tax fraud charges

They allegedly used zappers software to avoid sales tax.
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The owners of a restaurant in Burnsville are facing tax fraud charges after the Minnesota Department of Revenue accused them of evading sales tax.

Charges have been filed in Dakota County against Kehui Yang and Qiuyan Huang, both of Eagan, who have been charged with four counts each of filing fraudulent sales tax returns and four counts of failure to pay sales tax.

The pair run the Shogun restaurant in Burnsville, and according to the Revenue Department used "sales suppression software" on their tills to remove thousands of line items from sales receipts in order to underreport their monthly sales.

As a result, they underpaid on sales tax from March 2014 through June 2017.

They underpaid almost $43,000 in sales tax over that period, with Revenue Commissioner Cynthia Bauerly saying their use of such software, also known as zappers, "harms all businesses that report and pay their fair share of taxes."

"These charges represent the department’s growing ability to recognize when these illegal products are being used and hold those who you use them accountable."

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"Minnesota’s sales tax is a “trust tax” – customers pay the tax at the time of the sale with the expectation that businesses will remit it to the government on their behalf," added Dakota County Attorney James Backstrom.

"The use of zappers violates that trust; it deprives the state, local governments, and citizens of tax revenue and it creates an unfair advantage over businesses that send all of the sales taxes they collect to the government."

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