HENDERSONVILLE BUSINESSMAN SENTENCED TO 12 YEARS
ON SALES TAX EVASION CHARGES

NASHVILLE, Tenn. - The Tennessee Department of Revenue's Special Investigation Section conducted the investigation that led to today's 12-year sentence of Glen Irven McCarthy, president of Gourmet Pizza Plus, Inc., Hendersonville, Tenn., for evasion of sales tax. On Jan. 26, 2006, McCarthy, 48, pleaded guilty to 21 Class E Felony counts of sales tax fraud, a violation of Tenn. Code Ann. Section 67-1-1440(g) in the criminal court of Sumner County.

Today County Criminal Court Judge Jane Wheatcraft sentenced McCarthy to 12 years supervised probation. McCarthy was ordered to serve one year which is being held in abeyance as long as future tax returns are filed timely.

"The majority of businesses pay appropriate taxes," said Revenue Commissioner Loren L. Chumley. "This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans."

The investigation began when District Attorney General Ray Whitley provided information to the department indicating McCarthy was understating the sales tax liability of Gourmet Pizza Plus, Inc. d/b/a Gourmet Pizza, 408 Main St., Hendersonville, Tenn. Based on this information and other evidence gathered, McCarthy was indicted by the Sumner County Grand Jury on Feb. 10, 2005, on 21 counts of evading sales tax and one count of theft. The 21 counts charged McCarthy with unlawfully and knowingly evading and defeating sales tax collected and due to the state of Tennessee by filing false sales tax returns on behalf of Gourmet Pizza Plus, Inc., during the period Jan. 1, 2002, through Sept. 30, 2003. These fraudulent actions resulted in Gourmet Pizza Plus, Inc., failing to report $546,202.47 of taxable sales for the business and failing to remit $49,139.26 of the sales tax collected and due. As part of the sentence, McCarthy was ordered to make restitution of the amounts presented in the indictments. The Department of Revenue also will seek additional civil tax, penalties and interest from McCarthy.

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 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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