Shelby County Man and Son Arrested on Charges of Bribery, Theft and Sales Tax Evasion
Wednesday, December 17, 2008 | 03:12am
MEMPHIS, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest of Guang Huang, age 60, and his son Jian Huang, age 29, both of Shelby County, on Dec. 15.
Guang Huang is the owner of KK Market, located at 2200 Pendleton Street in Memphis. Sheriff’s deputies arrested each on one count of bribery, one count of theft of property, 30 counts of falsifying state tax returns, and one count of sales tax evasion. Bond was set at $10,000 each.
On Dec. 9, 2008, a Shelby County Grand Jury returned a 33 count indictment on Huang and his son that included Bribery of a Public Servant in violation of Tenn. Code Ann. 39-16-102, a Class C felony; Theft of Property between $10,000 and $60,000 in violation of Tenn. Code Ann. 39-14-103, a Class C felony; Falsification of a Return Required by Law in violation of Tenn. Code Ann. 67-1-1440(d), a Class E felony; and Sales Tax Evasion in violation of Tenn. Code Ann. 67-1-1440(g), a Class E felony.
The indictments charged that on Aug. 26, 2005, Huang and his son attempted to interfere with the administration of Tennessee’s tax laws by attempting to bribe an employee of the Department while the employee was acting in an official capacity. The indictments also charged that Huang and his son filed false and fraudulent sales tax returns with the Tennessee Department of Revenue that understated the gross taxable sales of KK Market and resulted in the willful failure to remit $33,395 of sales tax due the state of Tennessee.
"The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," said Revenue Commissioner Reagan Farr. "This investigation underscores our department's ongoing efforts to enforce Tennessee's tax laws."
If convicted, Huang and his son could each be sentenced to a maximum of six years in the state penitentiary for each Class C felony and a fine not to exceed $10,000. The Class E felony charges carry a maximum sentence of two years and a fine not to exceed $3,000. Additionally, civil taxes, penalties and interest will be due the state.
This case was pursued criminally by the department in cooperation with District Attorney General William L. Gibbon’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 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.
###