REVENUE INVESTIGATION LEADS TO ARREST OF OLIVER SPRINGS
BUSINESSMAN ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - Today special agents of the Tennessee Department of Revenue arrested Charles William Jackson on sales tax evasion charges. Jackson, 57, owns CJ's Bar & Grill located at 4532 Knoxville Highway in Oliver Springs, Tenn.

Jackson was indicted by the Morgan County Grand Jury on May 15, 2006, on one count of sales tax fraud, a Class E Felony in violation of Tenn. Code Ann. Section 67-1-1440(g). The indictment charged that Jackson unlawfully and knowingly evaded and defeated the sales tax due the state of Tennessee by failing to register with the Department of Revenue and by failing to file sales tax returns for CJ's Bar & Grill for the monthly periods of Jan. 1, 2003, through March 31, 2005.

“The majority of businesses pay appropriate taxes,” said Revenue Commissioner Loren L. Chumley. “This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans.”

A $2,500 bond was set. If convicted, Jackson could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for his failure to remit sales tax collected. In addition, civil tax, interest, 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.Tennessee.gov/revenue.

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