Memphis Businesswoman Arrested For Theft Of Property And Violations Of Revenue Laws

NASHVILLE, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted an investigation that led to the indictment and March 13 arrest of Brenda Ifabiyi, the owner of Ayokas Liquor Store located in Memphis, Tenn., on sales tax evasion and theft charges.

“Tennessee’s tax structure depends on taxpayers voluntarily complying with the laws,” said Commissioner Reagan Farr. “Taxpayers who collect but intentionally do not remit sales tax breach the public trust. This arrest underscores our commitment to collecting all taxes due the State of Tennessee.”

Ifabiyi was indicted by the Shelby County Grand Jury on March 8 on two counts of sales tax fraud, a violation of Tennessee Code Annotated Section 67-1-1440. One count charges that Ifabiyi failed to remit sales tax revenue to the Department of Revenue, and the other count charges that she submitted falsified sales tax returns to the department. Ifabiyi was also indicted on one count of theft of property over $10,000, a violation of Tennessee Code Annotated 39-14-103. Ifabiyi is charged with committing these acts from January 1, 2002 through January 1, 2005.

Ifabiyi was arrested by the Shelby County Sheriff’s Fugitive Squad on March 13, 2007, and a bond of $1,000 was set. If convicted, she could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count of sales tax evasion, and sentenced to a maximum of six years and $10,000 for the theft count. Additionally, civil taxes, penalties and interest will be due the state once the criminal case is concluded.

The Department of Revenue pursues criminal tax fraud cases in conjunction with the Fraud and Economics Crime Unit of the Shelby County District Attorney General’s Office.

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.