TENNESSEE DEPARTMENT OF REVENUE INVESTIGATION RESULTS
IN ARREST OF MEMPHIS BUSINESS OWNER
IBRAHIM I. AFANEH ARRESTED ON SALES TAX EVASION CHARGES
NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted an investigation that led to the indictment and yesterday's arrest of Ibrahim I. Afaneh, owner of Mini Max #3 located at 4511 Macon Rd. in Memphis, Tenn., on sales tax evasion charges and theft. The criminal complaint alleged Afaneh evaded or defeated taxes due the state of Tennessee by filing false and fraudulent sales tax returns during the period Jan. 1, 2000, through March 1, 2001, and April 1, 2001, through Dec. 31, 2001. Afaneh collected but failed to remit $17,261.24 of sales tax. The false returns were filed over a 23-month period. These acts were in violation of Sections 67-1-1440 and 39-14-103 of the Tennessee Code Annotated.
On April 18, 2005 , Afaneh was indicted by the Shelby County Grand Jury on two Class E Felony counts of filing false sales tax returns, one Class E Felony count of failing to remit sales tax collections, and one Class C Felony count of theft over $10,000. Afaneh, age 48, was arrested by the Shelby County Sheriff's Office on Aug. 24, 2005.
“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 Loren L. Chumley. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest business people.”
Afaneh will be required to appear in Division 7 of the Criminal Court of Shelby County, Tennessee, for arraignment after his court date has been set. If convicted, Afaneh could be sentenced to a maximum of six years in the state penitentiary and fined $3,000 for each count.
These cases are pursued criminally by the department in cooperation with local district attorneys general.
Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).
The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2004-2005 fiscal year, the department collected $9.6 billion in state taxes and fees. In addition to collecting state taxes, $1.7 billion of local sales tax was collected by the department for local governments during the 2004-2005 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.
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