Wilson County Business Owner Charged with Sales Tax Evasion and Theft

Nashville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Prakash Patel for sales tax evasion and theft.  Revenue Special Agents arrested Patel, 50, at his residence on Monday.

On December 8, the Wilson County Grand Jury indicted Patel on 36 Class E felony counts of sales tax evasion and one Class C felony count of theft of property over $10,000.  The indictments charge that from January 2011 through December 2013, Patel failed to remit $27,575.59 in sales tax collected from customers at Cheap Discount Tobacco and Beer, located in Lebanon. Bond was set at $10,000.

"This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies," said Revenue Commissioner Richard Roberts. "When sales tax revenues are collected by a retailer, they are at all times property of the state or local government, and they must be remitted to the state."

If convicted, Patel 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. He could be sentenced to a maximum of six years in the state penitentiary and fined up to $10,000 for theft of property.

The Department pursued this case criminally in cooperation with District Attorney Tommy Thompson and his staff. 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 and the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments.  To learn more about the Department, visit www.TN.gov/revenue.

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