Collierville Businessman Arrested on Theft and Sales Tax Evasion Charges
Wednesday, October 22, 2008 | 10:33am
COLLIERVILLE, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to the indictment and arrest today of Kenneth R. Gregory, 39, for theft and sales tax evasion.
On Oct. 9, 2008, the Shelby County Grand Jury returned a two-count indictment for Theft of Property Over $10,000 and Sales Tax Evasion. The theft charge, in violation of Tenn. Code Ann. Section 39-14-103, is a class C felony, and carries a maximum sentence of six years in the state penitentiary and a fine up to $10,000. Sales tax evasion, a violation of Tenn. Code Ann. 67-1-1440(g), is a class E felony with a maximum sentence of two years and fine of $3,000. The indictments charged between Dec. 1, 2002 and June 30, 2005, Gregory failed to register his business, Complete Business Software, Inc. with the Tennessee Department of Revenue and knowingly withheld more than $10,000 of collected sales taxes that he did not remit to the state of Tennessee.
“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.”
This case was pursued criminally by the department in cooperation with District Attorney General William Gibbon’s Fraud and Economic Crimes unit. Citizens who suspect violations of Tennessee's 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 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 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.
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