Sevier County Businessman Arrested on Sales Tax Evasion and Theft Charges

SEVIERVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Eric Eugene Gibby for sales tax evasion and theft.  Gibby, 39, surrendered Friday to Revenue Special Agents at the Sevier County Jail.

On January 5, the Sevier County Grand Jury indicted Gibby on one Class E felony count of sales tax evasion and one Class B felony count of theft of property over $60,000.  The indictments charge that Gibby failed to remit $185,890.91 in state sales tax due for U-Drive Auto, LLC. Bond was set at $25,000.

“Tennessee’s tax structure depends on taxpayers voluntarily complying with the laws,” Revenue Commissioner Richard Roberts said.  “Taxpayers, who collect but intentionally do not remit sales tax, breach the public’s trust and violate the criminal laws of the state.  This cause underscores our commitment to rigorous and fair administration of Tennessee’s tax laws.”

If convicted, Gibby could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for the count of sales tax evasion. He could be sentenced to a maximum of 12 years in the state penitentiary and fined up to $25,000 for theft of property.

The Department pursued the criminal case in cooperation with District Attorney General James Dunn 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 2015 fiscal year, it collected $12.6 billion in state taxes and fees and more than $2.4 billion in taxes and fees for local governments.  To learn more about the Department, visit www.tn.gov/revenue.