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Business owner accused of tax fraud over unlicensed nightclub

By Mike Bunge

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    ROCHESTER, Minnesota (KIMT) — A Rochester business owner accused of operating an after hours nightclub without a license has been charged with tax crimes.

Donyale Gayles-Johnson is facing four counts of filing false or fraudulent tax returns and five counts of failing to pay or collect taxes. The charges were filed following an investigation by the Rochester Police Department, the Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division, and the Minnesota Department of Revenue Criminal Investigation Division.

Investigators say Gayles-Johnson, owner of 45 Entertainment, grossly under reported income from the unlicensed night club and failed to pay state and local tax on liquor sales and cover charges between 2019 and 2023. Law enforcement says Gayles-Johnson owes an estimated $7,967.68 in sales and use tax, penalty, and interest for those years and $32,340.27 in income tax, penalties, and interest.

Each charge against Gayles-Johnson carries a maximum sentence of five years in prison and/or a $10,000 fine.

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