2008 News Releases
For Immediate Release: March 14, 2008
FORMER SHELBY COUNTY BUSINESS OWNER ARRESTED ON SALES TAX EVASION AND THEFT CHARGES
NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Douglas Brown. On March 11, 2008, Brown, former owner of Downtown Liquors located in Memphis, Tenn., was arrested by the Shelby County Sheriff's Department on charges of sales tax evasion and theft.
Brown was indicted on March 6, 2008 by the Shelby County Grand Jury for two Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Annotated 67-1-1440 and one Class D felony for theft in violation of Tennessee Code Annotated 39-14-103. According to the indictments, Brown failed to remit sales tax due the State of Tennessee from Sept. 1, 2004 through April 30, 2005.
If convicted, Brown could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. The Class D felony count carries a maximum sentence of four years in the state penitentiary and a $10,000 fine. Additionally, civil taxes, penalties and interest will be 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 Reagan Farr. "The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople."
This case was pursued criminally by the department in cooperation with the District Attorney General William L. Gibbons' Office. Citizens who suspect violations of Tennessee's 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 2006-2007 fiscal year, the department collected $11 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 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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