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Long Beach Contractor Arrested for State Income Tax Evasion

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Public Affairs Office
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For Immediate Release

01.20.2011

A Long Beach man was arrested on two counts of failing to file state income tax returns, the Franchise Tax Board (FTB) announced.

FTB special agents arrested Paul E. Kale, 47, on January 6 at his residence. According to FTB special agents, Kale's arrest warrant was originally issued in 2003 for his alleged failure to file his 1997 and 1998 tax returns and report a total of $263,376 of gross income from a painting and designing business he operated. Kale owes the state more than $79,594 in unpaid tax, interest, and penalties. The cost of the investigation will be added to this amount and sought as restitution. Each tax count carries a maximum sentence of three years in state prison.

The failure to report income is part of the $6.5 billion tax gap California faces each year. The tax gap is defined as the difference between the tax that is owed and the tax that is paid.

Kale was booked into the Los Angeles County Sheriff Department's Inmate Reception Center in Downtown Los Angeles. He posted bail and his arraignment date is January 27, 2011 at the Pasadena Courthouse.

The Los Angeles County District Attorney's Office is prosecuting the case.

For more information on other taxes and fees in California, visit: taxes.ca.gov.

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