Former Nashville Business Owners Charged with Sales Tax Evasion and Theft

NASHVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigations that led to the separate arrests of Zaidoun M. Nofal, also known as “Zack Nofal,” and Majed N. Massad on sales tax evasion and theft charges. On March 24, 2008, Nofal, former owner of Main Street Citgo located at 500 Main Street in Nashville, was arrested by special agents of the Tennessee Department of Revenue. Massad, former owner of Zack’s #1 located at 3508 Clarksville Highway in Nashville, was arrested the same day by the Metro-Nashville Police Department.

On March 18, 2008, Nofal was indicted by a Davidson County Grand Jury on fourteen Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Annotated 67-1-1440(g) and one Class C felony count of Theft over $10,000 in violation of Tenn. Code Annotated 39-14-103. The indictments charge that Nofal failed to report $539,027.38 of taxable sales and failed to remit $46,844.16 in sales tax to the state of Tennessee by intentionally filing false and fraudulent sales tax returns from July 1, 2003 through August 31, 2004.

Massad was arrested after being charged with three Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class C felony count of Theft over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. Massad is accused of failing to declare taxable sales of $567,580.99 and failing to remit $48,000.84 in sales tax collected from Feb. 1, 2003 through July 31, 2004.

If convicted, each 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 C felony charge carries a maximum sentence of six years in the state penitentiary and a $10,000 fine. Additional civil taxes, penalties and interest will be due the state.

“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.”