AUSTIN, Texas (AP) — An audit has determined that Travis County may owe the state more than $1 million because of suspicious vehicle title transfers that understated the amount of taxes owed to the state.
The Austin American-Statesman reports that the audit, released Tuesday, was the impetus for a fraud investigation that led to the recent arrest of seven people, including four who worked for the county tax assessor’s office.
Auditors reviewed transactions by a private company that contracted with the county to perform vehicle registration and title services.
One area of concern was so-called even-trade transactions in which two parties agree to exchange vehicles of equal value with no money changing hands.
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The audit notes the transactions, normally rare, occurred at an “unusually high volume.”
This resulted in taxes being withheld from the state.
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Information from: Austin American-Statesman, http://www.statesman.com