REVENUE INVESTIGATION RESULTS IN ARREST OF MADISON COUNTY
BUSINESSMAN ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - On April 7, special agents of the Tennessee Department of Revenue arrested Ricky Lynn Perry, 51, on sales tax evasion charges at his place of employment.

Perry was indicted by the Madison County Grand Jury on April 4, 2005, on two counts of evading sales tax. The indictment charged that Perry hindered the state of Tennessee in the collection and realization of its lawful revenue. This is in violation of Tenn. Code Ann. Section 67-1-1440(d). Perry is scheduled to be arraigned April 11.

"Tennessee's tax structure relies on taxpayers voluntarily complying with the laws," said Revenue Commissioner Loren L. Chumley. "Taxpayers who collect but intentionally do not remit sales tax breach the public trust. Yesterday's arrest underscores our commitment to collecting all taxes due the state of Tennessee."

If convicted, Perry could be sentenced to a maximum of two years on each count in the state penitentiary and fined $3,000 for each count relating to his failure to remit sales tax due the state of Tennessee. In addition, civil tax, interest, and penalties are due the state.

Citizens who suspect violations of the Tennessee revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

These cases are pursued criminally by the department in cooperation with local district attorneys general.

The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2003-2004 fiscal year, the department collected $9.1 billion in state taxes and fees. In addition to collecting state taxes, $1.6 billion of local sales tax was collected by the department for local governments during the 2003-2004 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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