Vinod Kumar Arrested on Sales Tax Evasion and Theft Charges for Three Tipton Co. Convenience Stores

Nashville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Vinod Kumar for tax evasion and theft. Kumar is part of the ownership group for three Tipton County convenience stores: Drummonds BP, Munford Gas Mart, and Gilt Edge Food Mart. Special Agents of the Tennessee Department of Revenue arrested Kumar, 46, on Tuesday. Bond was set at $10,000.

Monday, Kumar was indicted by a Tipton County Grand Jury on 16 Class E felony counts of tax evasion and one Class C felony count of theft of property. The indictments charged Kumar with failure to remit $47,672.19 in sales tax and one Class C felony charge of theft over $10,000. Kumar filed false sales tax returns and failed to remit all sales tax collected by the three convenience stores.

If convicted, Kumar could be sentenced up to two years in the state penitentiary for each count of sales tax evasion and up to six years for the theft charge. Kumar may also be fined up to $3,000 for each count of sales tax evasion and up to $10,000 for the theft charge

"This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies,” Revenue Commissioner Richard Roberts said. “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."

The Department pursued this criminal case in cooperation with District Attorney Mike Dunavant. 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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