Former Houston and Humphreys County Businessman Arrested for Sales Tax Evasion and Theft
Knoxville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to today's arrest of the President of Discount Tobacco & Beverage Outlet, LLC, on charges of sales tax evasion and theft. Barry Keith Daugherty, age 53, was arrested this morning by U.S. Marshals in Catoosa County Georgia.
On May 6, 2013, Barry Daugherty was indicted by a Houston County Grand Jury on thirteen Class E felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class B felony count of theft of property over $60,000 in violation of Tenn. Code Ann. Section 39-14-103. The indictments charge Daugherty with willfully attempting to evade or defeat sales tax totaling $141,011.02 during the period September 2010 through September 2011.
On June 3, 2013, Daugherty was indicted by a Humphreys County Grand Jury on twelve Class E felony counts of sales tax evasion and one Class B felony count of theft of property over $60,000. The indictments charge Daugherty with willfully attempting to evade or defeat sales tax totaling $73,730.55 during the period September 2010 through August 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, Daugherty could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of attempted sales tax evasion and a maximum of twelve years in the state penitentiary and fined up to $25,000 for theft of property.
This case was pursued criminally by the department in cooperation with District Attorney Generals Dan M. Alsobrooks' 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.