Wilson County Business Owner Arrested on Sales Tax Evasion and Theft Charges

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Navin K. Patel on sales tax evasion and theft charges. On March 13, 2008, Patel, owner of Liquor World located at 623-C South Cumberland St. in Lebanon, Tenn., was arrested by special agents of the Tennessee Department of Revenue.

Patel was indicted on March 10, 2008 by the Wilson County Grand Jury on 36 Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Annotated 67-1-1440(g) and one Class B felony count of Theft over $60,000 in violation of Tenn. Code Annotated 39-14-103.  According to the indictment, Patel failed to report $1,597,590.84 of taxable sales and did not remit $147,770.59 in sales tax collected from Jan. 1, 2003 to Dec. 31, 2005. If convicted, Patel could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. The class B felony count carries a maximum sentence of 12 years in the state penitentiary and a $25,000 fine.

“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.”

This case was pursued criminally by the department in cooperation with the District Attorney General Tom P. Thompson’s Office. Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).