Wilson County Businesswoman Arrested on Tax Evasion Charges

Tuesday, March 19, 2013 | 02:54pm

Lebanon, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to today's arrest of Norman Rosie Cannon, age 71, of Smithville, on tax evasion charges. Special Agents arrested Cannon at her place of business in Lebanon, Tennessee. Cannon is the owner of City Limits Cafe, Inc. Bond for Cannon was set at $10,000.

On March 11, 2013, Cannon was indicted by a Wilson County Grand Jury on 36 Class E felony counts of tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class C felony count of theft of property in violation of Tenn. Code Ann. Section 39-14-103. The indictments charge Cannon with failure to pay tax due the State totaling $13,341.49 and filing false sales tax returns for the periods January 2009 through December 2011.

"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Revenue Commissioner Richard H. Roberts. "Taxpayers who collect but intentionally do not remit sales tax, breach the public's trust and violate the criminal laws of the State. This case underscores our commitment to rigorous and fair administration of Tennessee's tax laws."

If convicted, Cannon could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of sales tax evasion and be sentenced to a maximum of six years and fined up to $10,000 for the theft of property count.

This case was pursued criminally by the department in cooperation with District Attorney General Tommy 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).

In addition to collecting state taxes, over $2.0 billion of local sales and business taxes were collected by the department for local governments during the 2012 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.