FORMER MEMPHIS BUSINESS OWNER ARRESTED FOR FAILING TO
REMIT COLLECTED SALES TAX

NASHVILLE, Tenn. - Anthony R. Vaughn, former owner of Hickory Hill Wine & Spirits located at 6326 Winchester Rd. in Memphis, Tenn., was arrested today by local authorities for sales tax evasion. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Vaughn, age 47.

On Aug. 11, 2005, the Shelby County Grand Jury indicted Vaughn on one count of sales tax fraud, one count of providing false information, one count of failure to file state sales tax returns and one count of theft over $60,000. The indictments charged that Vaughn intentionally failed to report all of his taxable sales. The false returns were filed over the 48-month period from Jan. 1, 2000, through Dec. 31, 2003. This is in violation of Tenn. Code Ann. Section 67-1-1440(g).

If convicted, Vaughn could be sentenced to a maximum of six years in the state penitentiary and fined $3,000 for each of the first three counts and a maximum of 15 years in the state penitentiary and a fine of $10,000 for the last count. Additional civil taxes, penalties and interest will be due the state upon conclusion of the criminal case.

“When sales tax is collected from the public and not remitted, it is a breach of the public trust,” said Revenue Commissioner Loren L. Chumley. “The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions.”

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

These cases are pursued criminally by the department in cooperation with local district attorneys general.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.

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