2008 News Releases
For Immediate Release: January 24, 2008
HAMILTON COUNTY BUSINESS OWNER SENTENCED ON SALES TAX EVASION CHARGES
SEVIERVILLE, Tenn. -The Department of Revenue's Special Investigations Section conducted the investigation that led to the indictment and subsequent guilty plea of Frank Ray Ruth to 37 counts of sales tax evasion charges. On Jan. 14, 2008, Ruth, previous owner of Sports Wine & Spirits located at 5510 Highway 153, Suite 9 in Hixson, Tenn., was sentenced to three years of unsupervised probation.
According to the indictment, Frank Ruth failed to declare taxable sales of $570,744.28 and did not remit $50,198.80 in sales tax collected from Dec. 1, 2000 to Dec. 31, 2003. On July 9, 2007, Ruth pled guilty to 37 counts of Sales Tax Evasion. Judge Rebecca Stern ordered Ruth to pay $50,198.80 in restitution to the state for the unpaid sales tax collected, reserving sentencing until Jan. 14, 2008 when she placed Ruth on three years of unsupervised probation.
"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Commissioner Reagan Farr. "Taxpayers who collect but intentionally do not remit sales tax breach the public's trust. This conviction underscores our commitment to collecting all taxes due the state of Tennessee."
This case was pursued criminally by the department in cooperation with Hamilton County District Attorney General Bill Cox'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.TN.gov/revenue.
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