Memphis businessman arrested for theft of property and violations of the state’s revenue laws

MEMPHIS, Tenn. — Willie Johnson, Jr., age 69 and owner of J&J Liquors located in Memphis, Tenn., was arrested by officers from the Shelby County Sheriff’s Fugitive Division yesterday for sales tax evasion and theft of property  greater than $10,000.  Bond was set at $5,000.

The arrest resulted from an investigation conducted by the Special Investigations Section of the Tennessee Department of Revenue.  On August 16, 2007, the Shelby County Grand Jury returned a two-count indictment for evasion of sales tax in violation of Tennessee Code Annotated Section 67-1-1440(g), a Class E Felony.  The Grand Jury also returned a one-count indictment for theft of property over $10,000 in violation of Tennessee Code Annotated Section 39-14-103, a Class C Felony.

If convicted, Johnson could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count of sales tax evasion, and sentenced to a maximum of six years and fined $10,000 for the theft count.  Additionally, civil taxes, penalties and interest will be due the state once the criminal case is concluded.

“Tennessee’s tax structure depends on taxpayers voluntarily complying with the laws,” said Commissioner Reagan Farr.  “Taxpayers who collect but intentionally do not remit sales tax breach the public trust.  This arrest underscores our commitment to collecting all taxes due the State of Tennessee.”

These cases are pursued criminally by the department in cooperation with the Shelby County District Attorney’s Fraud and Economic Crimes Unit.

Citizens who suspect violations of the 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 $11.0 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.