Wilson County Business Owner Enters Guilty Plea to Sales Tax Evasion and Theft Charges
Monday, January 26, 2009 | 06:50am
NASHVILLE - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to today’s guilty plea by Navin K. Patel, owner of Liquor World, located at 623-C South Cumberland Avenue in Lebanon. Patel entered a guilty plea to one Class C felony count of Theft of Property Over $10,000 and one Class E felony count of Sales Tax Evasion.
Patel was sentenced to three years in the state penitentiary for the theft and one year for the tax evasion charge. All time was suspended to probation with the two sentences to run consecutively. As part of the plea agreement, Patel repaid $147,770 to the state for sales tax he collected from Jan. 1, 2003 to Dec. 31, 2005, but did not remit. In addition, he will owe civil penalty and interest. All other felony counts against Patel were dismissed.
“The majority of businesses pay appropriate taxes,” said Revenue Commissioner Reagan Farr. “This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans.”
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).
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.
Related news: March 14, 2008 – Wilson County Business Owner Arrested on Sales Tax Evasion and Theft Charges (http://tennessee.gov/revenue/newsreleases/2008/patelarrest.htm)
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