CROSSVILLE BUSINESSMAN ARRESTED
FOR FAILING TO REMIT COLLECTED SALES TAX

NASHVILLE, Tenn. - Gary Austin Molthen, d/b/a Big Orange Enterprises, of Crossville, Tenn., was arrested on charges of sales tax evasion today at his residence by agents of the Tennessee Department of Revenue. The Cumberland County Sheriff's Office and the Crossville Police Department assisted in the arrest. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation leading to the indictment and subsequent arrest of Molthen, age 49, for failing to remit all sales taxes collected.

"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."

Molthen was indicted by the Cumberland County Grand Jury on March 7, 2006, on one count of sales tax evasion, a Class E Felony in violation of Tenn. Code Ann. Section 67-1-1440(g). The indictment charged Molthen with failing to report all taxable sales and failing to remit all sales tax collected.

A $10,000 bond was set. If convicted, Molthen could be sentenced to a maximum of two years in the state penitentiary for each count of sales tax fraud and fined $3,000 for his failure to remit sales tax collected. In addition, civil tax, interest, and penalties are due the state.

Citizens who suspect violations of the Tennessee revenue laws should call the department's 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.

###