2006 News Releases
For Immediate Release: February 16, 2006
REVENUE INVESTIGATION LEADS TO SURRENDER OF HUMBOLDT BUSINESSMAN
ON SALES TAX EVASION CHARGES
NASHVILLE, Tenn. - Robin Ellis surrendered himself to authorities of the Trenton Police Department on Feb. 15. The Tennessee Department of Revenue's Special Investigations Section conducted the investigation leading to the indictment and subsequent surrender of Ellis, age 50, on tax evasion and theft charges. Ellis owns Robin Ellis Paint & Body Repair, located at 2814 East End Drive in Humboldt, Tenn.
"This surrender highlights the Department of Revenue's commitment 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."
Ellis was indicted by the Humboldt Grand Jury on Feb. 14, 2006, on three counts of sales tax evasion, a violation of Tenn. Code Ann. Section 67-1-1440(g). The indictment charged Ellis willfully attempted to evade sales tax due the state of Tennessee by filing false sales tax returns for his business during the period Jan. 1, 2000, through Dec. 31, 2002. These fraudulent actions resulted in Ellis failing to remit $20,657 of tax collected. Ellis also was indicted on one count of theft over $10,000, a violation of Tenn. Code Ann. Section 39-14-103.
A $10,000 bond was set for Ellis. If convicted, he could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count of sales tax evasion, and six years and $10,000 for the theft count. Additionally, civil taxes, penalties and interest will be due the state once the criminal case is concluded.
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 department's 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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