For Immediate Release: Feb. 24, 2012
Shelby County Man Pleads Guilty to Sales Tax Evasion Charges
Memphis, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the February 23, 2012, guilty plea of Obsiye A. Adam, age 49, of Memphis, Tenn. Adam, owner of Lauderdale Market located at 1052 S. Lauderdale Street in Memphis, was sentenced by Shelby County Criminal Court Judge Otis Higgs, Jr.
Adam pled guilty to five counts of Sales Tax Evasion, in violation of Tenn. Code Ann. Section 67-1-1440, a Class E felony. Judge Higgs placed Adam on one year supervised probation and sentenced him to serve 24 hours of community service. Adam was ordered to pay full restitution to the Tennessee Department of Revenue in the amount of $12,073.31.
"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Revenue Commissioner Richard H. Roberts. "Taxpayer's who collect but intentionally do not remit sales tax, breach the public's trust and violate the criminal laws of the State. This case underscores our commitment to rigorous and fair administration of Tennessee's tax laws."
Prosecution of this criminal case was pursued by the department in cooperation with District Attorney General Amy Weirich'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).
In addition to collecting state taxes, $2.0 billion of local sales and business taxes were collected by the department for local governments during the 2011 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.