Former Memphis Business Owner Sentenced to Two Years for Sales Tax Evasion and Theft
Monday, July 20, 2009 | 11:01am
MEMPHIS, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to the sentencing of Wendell Kaku, 56, to charges of sales tax evasion and theft.
On July 20, 2009, Kaku pleaded guilty to one count of Theft of Property Over $10,000 and one count of Sales Tax Evasion. He was sentenced to two years in the Shelby County Penal Farm for the theft charge and two years for tax evasion charge. The sentences will run concurrently. He was also ordered to make full restitution of $23,654 to the state of Tennessee.
On Oct. 8, 2008, the Shelby County Grand Jury returned a one-count indictment for Theft of Property Over $10,000, a violation of Tenn. Code Ann. 39-14-103, and two counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g), Class C and Class E felonies, respectively. The indictments charged that Kaku failed to register his business, Midtown Supermarket, between Jan. 1, 2003 and Dec. 31, 2004. As a result, he failed to report sales of $255,727.46 and intentionally did not remit $23,654 of sales tax collected to 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 District Attorney General William Gibbons’ 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 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.
Related news: April 15, 2009 - Former Memphis Business Owner Arrested in Las Vegas on Theft and Sales Tax Evasion Charges (http://news.tennesseeanytime.org/node/1283)
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