FORMER NASHVILLE BUSINESS OWNER PLEADS GUILTY TO
SALES TAX EVASION CHARGES

NASHVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest and subsequent guilty plea of Zaidoun M. Nofal, also known as “Zack Nofal,” on sales tax evasion charges. On May 28, 2008, Nofal, former owner of Main Street Citgo located at 500 Main Street in Nashville, pleaded guilty to three Class E felony counts of tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g).

Nofal was sentenced to two years supervised probation for each count. Two counts will be served consecutively and one will be served concurrently for a total of four years. As a condition of probation, Nofal was ordered to pay $46,844.16 in restitution, which represents the sales tax Nofal collected and failed to remit for the period of July 1, 2003 through Aug. 31, 2004. The remaining counts of the indictment were dismissed. Upon successful completion of probation, Nofal may qualify for judicial diversion.

“When sales tax is collected from the public and not remitted, it is a breach of the public trust,” said Commissioner Reagan Farr. “The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions.”

This case was pursued criminally by the department in cooperation with District Attorney General Victor S. Johnson’s 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.Tennessee.gov/revenue.

Related news: March 25, 2008 – Former Nashville Business Owners Charged with Sales Tax Evasion and Theft (http://tennessee.gov/revenue/newsreleases/2008/nofalmassadarrests.htm)

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