Elizabeth City Businessman Pleads Guilty to State Tax Charges

Date: 6/7/2004

RALEIGH – An Elizabeth City businessman pleaded guilty Monday in Wake County District Court to tax charges filed by the North Carolina Department of Revenue.

Robert Lee McDaniels, 52, of 200 Shipyard Road, Camden, pleaded guilty on June 7, 2004 to two counts of aiding and abetting a corporation in attempting to evade or defeat North Carolina and Pasquotank County sales taxes. McDaniels was a corporate officer of City Motor Parts, Inc., a restaurant doing business as The City’s Meeting Place.

Wake County District Court Judge Robert B. Rader sentenced McDaniels to a 6-month minimum, 8-month maximum prison term. The sentence was suspended and McDaniels was placed on supervised probation for 36 months. He was also ordered to pay $15,779.31 in restitution, perform 40 hours of community service and pay a $100 criminal fine. The corporation has paid the restitution.

The state’s evidence showed that McDaniels was responsible for collecting and remitting the North Carolina and Pasquotank County sales taxes to the Department of Revenue. The business collected sales tax from its customers from Nov. 1, 2002 through March 31, 2003 but did not report the collections or pay the taxes to the North Carolina Department of Revenue. The evidence showed that the sales taxes collected were used to pay the operating expenses of the business.

The charges against McDaniels resulted from an investigation by an auditor with the Elizabeth City Field Examinations Office and a special agent with the Department’s Criminal Investigations Division.

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