Former Sumner County Businessman Charged with Sales Tax Evasion and Theft
Friday, July 17, 2009 | 03:20am
NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Ajaykumar C. Parikh, age 53. On July 16, 2009, Parikh, the former manager of Chandni, Inc., dba Portland Discount Tobacco, located in Portland, Tenn., was arrested by special agents on charges of Sales Tax Evasion and Theft in Sumner County.
Parikh was indicted by a Sumner County Grand Jury on 24 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 of Property valued over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. The indictments charge that Parikh failed to remit $28,987.03of sales tax due the state of Tennessee by intentionally filing false and fraudulent sales tax returns from April 2004 through March 2006. If convicted, Parikh could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count and a maximum of six years and a fine of $10,000 for the Class C felony count. Additional civil taxes, penalty 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."
This case was pursued criminally by the department in cooperation with Sumner County District Attorney General L. Ray Whitley. 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 2008-2009 fiscal year, the department collected $10.2 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 2008-2009 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.
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