REVENUE INVESTIGATION RESULTS IN PLEA BY SEVIERVILLE BUSINESSMAN

NASHVILLE, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent plea of 41-year-old Benjamin Franklin Darnell, Jr., on sales tax evasion charges. Darnell is the president of Golden Eagle, Inc. located at 201 Forks of the River Pkwy., Sevierville, Tenn. On Nov. 13, 2007, Darnell entered a Best Interest plea in Sevier County Criminal Court to three counts of tax evasion. The court placed Darnell on two years unsupervised probation and ordered him to make restitution to the state in the amount of $28,717.

“When sales tax is collected from the public and not remitted, it is a breach of the public trust,” said Commissioner Reagan Farr. “The Department of Revenue aggressively pursues criminal sanctions and demands accountability for such actions.”

On May 22, 2007, Darnell was indicted by the Sevier County Grand Jury on eight Class E felony counts of sales tax evasion, in violation of Tenn. Code Ann. Section 67-1-1440(g), following an investigation by the department’s Special Investigations Section. The indictment charged Darnell with failing to report all taxable sales and failing to remit all sales tax collected.

This case was pursued criminally by the department with the assistance of District Attorney James Dunn’s Office. Citizens who suspect violations of Tennessee 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 established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2006-2007 fiscal year, the department collected $11 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2006-2007 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.

Related news: May 31, 2007 – Revenue investigation leads to surrender of Sevierville businessman on sales tax evasion charges (http://tennessee.gov/revenue/newsreleases/2007/darnell.htm)

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