2008 News Releases
For Immediate Release: August 1, 2005
REVENUE INVESTIGATION RESULTS IN GUILTY PLEA
OF MURFREESBORO BUSINESSMAN ON SALES TAX EVASION CHARGES
NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigation Section conducted the investigation that led to Payaddi Rajaram Shivashankar, 42, pleading guilty to six counts of felony tax evasion on July 28, 2005. Shivashankar was the general manager of Baymont Inn and Suites formerly located at 2135 South Church Street in Murfreesboro, Tenn. Rutherford County Criminal Court Judge James K. Clayton, Jr. sentenced Shivashankar to time served and six years supervised probation. The corporation who owned the hotel has already paid restitution to the state.
Shivashankar was indicted by the Rutherford County Grand Jury on December 3, 2003, on fourteen counts of sales tax fraud. The indictment charged that Shivashankar unlawfully and knowingly evaded the State of Tennessee in the collection of lawful revenue by failing to file sales tax returns for the period June 1, 1999, through July 31, 2000. The fraudulent actions resulted in Shivashankar failing to remit $49,791.51 in sales tax collected. In April 2003, Shivashankar was arrested by federal agents relating to bank and wire fraud charges. He was released to Rutherford County officials in May 2005.
"The Department of Revenue is committed to applying Tennessee's tax laws and policies uniformly to all taxpayers to ensure a level playing field," said Revenue Commissioner Loren L. Chumley. "The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople."
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 (372-8389).
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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