ST. PAUL, Minn. – The Minnesota Department of Revenue announced that the Ramsey County Attorney’s Office recently charged JiFu “Tony” Yang, of Eagan, with 16 felony counts of aiding or assisting in the filing of false or fraudulent sales tax returns. The charges against Mr. Yang are related to previous charges against Shogun Burnsville and its owners.

According to the complaint, a manager at the Shogun restaurant in Burnsville and Hailong “Jeffrey” Li, who was previously charged and convicted for aiding in the filing of a false or fraudulent sales tax return, told investigators that Mr. Yang, a self-described restaurant consultant and husband of one of the owners, helped the restaurant obtain the sales suppression software “Happy World” to modify their sales records in order to reduce the amount of sales tax they owed. Mr. Yang allegedly told investigators that he had purchased a POS system from Mr. Li but denied knowing about the “Happy World” software. However, the complaint alleges that Mr. Yang asked Mr. Li to provide Shogun Burnsville with the sales suppression software. The complaint states that the “Happy World” software was in use at Shogun Burnsville from at least February 2016 through May 2017, and during that time it suppressed over $13,900 in total tax. Sales tax returns containing this false tax information were submitted monthly by the restaurant during that period.

Each tax-related felony charge carries a maximum penalty of five years in prison, a $10,000 fine, or both. Defendants are presumed innocent unless and until proven guilty.

Although most taxpayers comply with tax laws voluntarily, the department takes enforcement action against noncompliant taxpayers to ensure that tax laws are administered fairly.

Many of the department’s criminal case referrals come from public tips. There is a 24-hour tip line for anyone who suspects that a person or business is violating Minnesota tax laws. Local callers may dial 651-297-5195 or call toll-free by dialing 1-800-657-3500. Tips can also be submitted to the department by email at tax.fraud@state.mn.us. Tipsters may choose to remain anonymous. 

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