For Immediate Release: Nov. 15, 2013
Knox County Businessman Arrested on Sales Tax Evasion Charges
Knoxville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Ali Khalil, 43, for sales tax evasion.
Khalil, of Knoxville, surrendered to Revenue Special Agents Friday at the Knox County Detention Center. Bond was set at $8,000.
On November 12, the Knox County Grand Jury indicted Khalil on seven Class E felony counts of sales tax evasion and one Class C felony count of theft of property. The indictment charges that Khalil willfully attempted to evade $13,416.64 in sales tax due the state for Andy's Market, formerly located on Magnolia Avenue in Knoxville, from December 2011 through June 2012.
"This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies," said Revenue Commissioner Richard H. Roberts. "When sales tax revenues are collected by a retailer they are at all times property of the state or local government and must be remitted to the state."
If convicted, Khalil could be sentenced up to a maximum of two years in the state penitentiary and fined up to $3,000 for each of the tax evasion counts and a maximum of six years in the state penitentiary and fined up to $10,000 for the one count of theft.
The Department worked on the prosecution of this criminal case with District Attorney General Randy Nichols' 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 and the collection of taxes and fees associated with those laws. The department collects about 87 percent of total state revenue. During the 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments. To learn more about the department, visit www.TN.gov/revenue.