FORMER NASHVILLE BUSINESSMAN PLEADS GUILTY TO
SALES TAX EVASION CHARGES

NASHVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest and subsequent guilty plea of Majed N. Massad on sales tax evasion and theft charges. On April 30, 2008, Massad, former owner of Zack’s #1 located at 3508 Clarksville Highway in Nashville, pleaded guilty to two Class E felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g).

Massad was sentenced to two years of supervised probation for each count. If Massad successfully completes the first two years of probation, then he can petition the court to allow him to spend the remaining time on unsupervised probation. The court also ordered Massad to pay restitution to the state in the amount of $48,000.81 for the sales tax he collected and failed to remit from Feb. 1, 2003 through July 31, 2004. The other counts of sales tax evasion and theft over $10,000 were dismissed pursuant to the plea agreement.

“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.”

This case was pursued criminally by the department in cooperation with the District Attorney General Victor S. Johnson’s Office. Citizens who suspect violations of Tennessee’s 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: March 25, 2008 – Former Nashville Business Owners Charged with Sales Tax Evasion and Theft (http://tennessee.gov/revenue/newsreleases/2008/nofalmassadarrests.htm)

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