Former Knox County Businessman Pleads Guilty to Sales Tax Fraud

Knoxville, Tenn. - Raymond Karl Walker, 66, former owner of Home Filtration, Inc., pleaded guilty to one felony count of theft and five felony counts of sales tax fraud in Knox County Criminal Court on Thursday.

Knox County Judge Steven Green sentenced Walker to three years supervised probation and ordered him to pay $16,438.63 in restitution to the state for sales tax owed. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to Walker's plea and sentencing.

"This investigation serves as a reminder that retailers are not entitled to use or keep sales tax monies," Revenue Commissioner Richard Roberts said. "Sales tax revenues collected by retailers are never property of the retailer and are always the property of our state and local governments. These taxes must be remitted to the state as required by law."

The Department pursued the criminal case in cooperation with District Attorney General Charme Allen'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).

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 2014 fiscal year, it collected $11.8 billion in state taxes and fees and more than $2.3 billion in taxes and fees for local governments. To learn more about the Department, visit www.TN.gov/revenue.

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