Hawaii Tax: Realty Company & Owner Sentenced for Not Filing Tax Returns

HONOLULU — A criminal complaint was filed against Kumai Realty, Inc., which charged the corporation with three counts of failing to file its annual general excise tax returns and three counts of failing to file its corporate income tax returns for 2004 through 2006. The complaint also charged Marc Kumai, the corporation president, as the responsible person who failed to file these returns on behalf of the corporation.

Kumai entered "no contest" pleas on behalf of the corporation and himself and asked for a deferral of his plea before being sentenced by Circuit Court Judge Derrick Chan on September 14, 2009. Judge Chan granted the deferred acceptance of no contest plea to Kumai and placed both parties on a one-year deferral. Kumai was ordered to pay a fine of $6,000 ($500 per count) within six months and each were held jointly and severally liable to pay restitution in the amount of $85,032. The restitution payments are to be paid in monthly installments at a minimum of $250 and each were ordered to remain tax compliant during the deferral period.

Kumai Realty, Inc. earned over $5.2 million in gross income for the years in question.

All charges were misdemeanor violations and upon conviction, one could pay a fine up to $25,000 for an individual and $100,000 for a corporation per violation, a period of incarceration not to exceed one-year or probation.

For more information contact:

Stephen Hironaka
Criminal Tax Investigator

Phone: (808) 587-1795
Email: Stephen.T.Hironaka@hawaii.gov