Tennessee Department of Revenue

REVENUE INVESTIGATION LEADS TO GUILTY PLEA OF KNOXVILLE
BUSINESSMAN ON CHARGES OF THEFT

NASHVILLE, Tenn. - Rodney Dale Smith pled guilty to three Class C Felony counts of theft of property of less than $60,000 today in Knox County Criminal Court. Smith was placed on judicial diversion, three years of supervised probation and ordered to pay restitution to the state in the amount of $31,434.01. In addition, civil tax, interest, and penalties are due the state.

"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 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.

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 is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2005-2006 fiscal year, the department collected $10.3 billion in state taxes and fees. In addition to collecting state taxes, $1.8 billion of local sales tax was collected by the department for local governments during the 2005-2006 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.