2005 News Releases
For Immediate Release: November 16, 2005
REVENUE INVESTIGATION LEADS TO ARREST OF KNOXVILLE
BUSINESSMAN ON SALES/USE TAX EVASION CHARGES
NASHVILLE, Tenn. - Rodney Dale Smith was arrested on Nov. 15, 2005, by special agents of the Tennessee Department of Revenue. A writ stemming from sealed indictments returned by the Knox County Grand Jury for evasion of sales tax due the state of Tennessee and theft of property of less than $60,000 was issued for Smith's arrest. Bond was set at $10,000.
"The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," said Revenue Commissioner Loren L. Chumley. "This investigation underscores the department's ongoing efforts to enforce Tennessee's tax laws."
The investigation was conducted by the Special Investigations Section of the Tennessee Department of Revenue. On Oct. 24, 2005, the Knox County Grand Jury returned a 60-count indictment for evasion of sales tax in violation of Tenn. Code Ann. Section 67-1-1440(d) and (g), Class E Felonies. The Grand Jury also returned a three-count indictment for theft of property in violation of Tenn. Code Ann. Section 39-14-103, a Class C Felony.
If convicted of the charges, Smith could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count of sales tax evasion. If convicted of the theft of property charges, Smith could be sentenced to a maximum of six years in prison and fined up to $10,000. In addition, civil tax and penalties are due the state.
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 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.TN.gov/revenue.
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