The company that bought Gov. Nathan Deal’s auto salvage business in Gainesville is embroiled in a dispute with the state over tens of millions in back taxes, financial records show.
Copart Inc., an international Internet vehicle auction sales company based in Dallas, Texas, bought Gainesville Salvage Disposal, owned by Deal and business partner Ken Cronan, in May for about $4.1 million. The company is also paying Deal and Cronan $10,000 each a month for 10 years to lease property on the site.
Copart has several businesses in Georgia, including in Savannah, Tifton, Loganville and Ellenwood. It operates online vehicle auctions and remarketing services in Canada, the United Kingdom, the United Arab Emirates, Brazil and Germany.
According to the company’s Security and Exchange Commission filings, the Georgia Department of Revenue audited the company for sales and use taxes from Jan. 1, 2007, through June 30, 2011, and notified the company it owed $73.8 million, along with interest and penalties.
Randy Evans, Deal’s attorney, said he was unaware of the issue until informed Thursday by The Times.
Evans cited the blind trust that is handling Deal’s financial dealings without his involvement while he is governor.
“The short answer is that we walled off so that we had no knowledge, participation or anything to do with any business that Copart might have with the state of Georgia,” Evans said. “We literally created almost a screen to just say as long as this meets with all of the legal boundaries that are imposed, both as a publicly traded company as well as whatever rules that apply from our end, we did not want to know or be involved in anything that had to do with the state.”
Comments ( 0 )