REVENUE INVESTIGATION LEADS TO KNOX COUNTY BUSINESSMAN
PLEADING GUILTY TO SALES TAX EVASION

NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigations Section conducted the investigation that led to Mark Newman Swaggerty pleading guilty to one misdemeanor count of sales tax evasion in Knox County Criminal Court. Swaggerty, president of John Sevier Auto Sales, Inc., d/b/a Midway Motors, was granted judicial diversion and placed on unsupervised probation. Swaggerty has already paid restitution to the state.

Swaggerty was indicted by the Knox County Grand Jury on Jan. 11, 2005, on six counts of sales tax fraud and one count of theft. The indictment charged that Swaggerty willfully and intentionally caused Midway Motors, located at 6275 Clinton Highway in Knoxville, to file false and fraudulent sales tax returns for the periods June 1, 2002, through Dec. 31, 2002. These fraudulent actions resulted in John Sevier Auto Sales, Inc. failing to report $246,320 of taxable sales for the business and failing to remit $21,027 of the proper sales tax collected and due. The Department of Revenue also will seek additional civil fines and penalties from Swaggerty.

"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."

The department pursues criminal cases in cooperation with local district attorneys general.

Chumley encourages citizens who suspect violation of the Tennessee revenue laws to 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.Tennessee.gov/revenue.

###