Washington County Business Owner Pleads Guilty on Sales Tax Evasion Charges
Tuesday, March 31, 2009 | 05:33am
JONESBOROUGH, Tenn. - The Department of Revenue’s Special Investigations Section conducted the investigation that led to the indictment and yesterday’s guilty plea of Gonzalo Alverez Moralez to six counts of sales tax evasion charges. Moralez, president of Ornelas, Inc., d/b/a La Carreta Mexican Restaurant located in Gray, Tenn., will be sentenced on May 18.
Moralez paid restitution to the State in the amount of $60,105.65 for unpaid sales tax. According to the indictment, Moralez failed to declare taxable sales of $635,995.56 and failed to remit $60,105.65 in sales tax collected at his business located at 5494 Bobby Hicks Highway in Gray from Oct. 2002 through March 2004.
“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 District Attorney General Tony Clark’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.TN.gov/revenue.
Related news: Nov. 14, 2008 – Washington County Business Owner Arrested for Sales Tax Evasion and Theft (http://news.tennesseeanytime.org/node/616)
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