2005 News Releases
For Immediate Release: February 4, 2005
REVENUE INVESTIGATION RESULTS IN ARREST OF
FORMER BUSINESS MANAGER
BRIAN K. ORR ARRESTED ON SALES TAX EVASION CHARGES
NASHVILLE, Tenn. - Brian K. Orr is being arraigned today in Shelby County Criminal Court following his arrest yesterday on sales tax evasion charges. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to his indictment and subsequent arrest. His bond was set at $10,000.
On Feb. 1, 2005, Orr, age 38, was indicted by the Shelby County Grand Jury on one felony count (Class E) of filing false sales tax returns, one felony count (Class E) of failing to remit sales taxes, one felony count (Class E) of failing to file sales tax returns, and one felony count (Class C) of theft over $10,000. The indictment involves Casino Liquor, which was located at 2271 South Third St. in Memphis, where Orr was the manager.
The criminal complaint alleged Orr filed false sales tax returns with the state of Tennessee during the period March 1, 2000, through June 30, 2002, and failed to file sales tax returns from July 1, 2002, through Sept. 30, 2002. Orr collected but failed to remit $25,887.89 of sales tax. The false returns were filed over a 28-month period. This is in violation of Tenn. Code Ann. Section 67-1-1440(g).
"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Revenue Commissioner Loren L. Chumley. "Taxpayers who collect but intentionally do not remit sales tax breach the public trust. Today's arrest underscores the Department of Revenue's commitment to collecting all taxes due the state of Tennessee."
If convicted, Orr could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for the three counts relating to filing false sales tax returns, failure to remit sales taxes and failing to file sales tax returns. If convicted of theft of property, Orr could be sentenced to a maximum of six years in prison and fined up to $10,000.
These cases are pursued criminally by the department in cooperation with local district attorneys general.
Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (371-8389).
The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 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.TN.gov/revenue.
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