Perry County Business Owner Charged with Sales Tax Evasion

Nashville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Jaykumar Suresh Patel for sales tax evasion.  On Tuesday, Revenue Special Agents arrested Patel, 32, at his business in Linden, Tenn.

On November 24, a Perry County Grand Jury indicted Patel on 29 Class E felony counts of sales tax evasion.  The indictments charge that from January 2011 through May 2013, Patel failed to remit $42,676.92 in collected sales tax from customers of Tobacco Mart, located in Linden. Bond was set at $1,000.

"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 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 sales tax evasion.

This case is being pursued criminally by the Department in cooperation with District Attorney Kim Helper and her 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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