Morgan County Businessman Pleads Guilty to Sales Tax Fraud

NASHVILLE, Tenn. - Today Charles William Jackson, owner of CJ’s Bar & Grill located at 4532 Knoxville Highway in Oliver Springs, Tenn., pled guilty to one count of sales tax fraud, a violation of Tenn. Code Ann. Section 67-1-1440(g). The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation leading to today’s guilty plea.

“The Department of Revenue is committed to applying Tennessee’s tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople.”

Jackson, 57, was indicted by the Morgan County Grand Jury on May 15, 2006, on one count of sales tax fraud, a Class E Felony. The indictment charged that Jackson unlawfully and knowingly evaded and defeated sales tax due the state of Tennessee by failing to register with the Department of Revenue and by failing to file sales tax returns for CJ’s Bar & Grill for the monthly periods of Jan. 1, 2003, through March 31, 2005. These fraudulent actions resulted in CJ’s Bar & Grill failing to report $74,448.43 of taxable sales for the business and failing to remit $6,700.36 of the sales tax collected and due.

Morgan County Criminal Court ordered Jackson to pay restitution in the amount of $6,700.36. His sentencing hearing is scheduled on May 29, 2007, wherein he could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for his failure to remit sales tax collected. The Department of Revenue will seek additional civil fines and penalties from Jackson.

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.