Wilson County Business Owner Surrenders on Sales Tax Evasion and Theft Charges
Friday, October 17, 2008 | 05:27am
NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Hemantkumar B. Padhiyar on sales tax evasion and theft charges.
On Oct. 16, 2008, Padhiyar, owner of Sam’s Liquors and Wines located at 1027-B West Main Street in Lebanon, Tenn., surrendered himself to special agents of the Tennessee Department of Revenue.
On Oct. 14, 2008, Padhiyar was indicted by a Wilson County Grand Jury on 40 Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class C felony count of Theft of Property Over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. According to the indictment, Padhiyar failed to report $476,854.74 of taxable sales and did not remit $44,032.29 in sales tax he collected from Jan. 1, 2003 to June 30, 2006. If convicted, Padhiyar could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. The Class C felony count carries a maximum sentence of six years in the state penitentiary and a $10,000 fine.
“The majority of businesses pay appropriate taxes,” said Revenue Commissioner Reagan Farr. “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.”
This case was pursued criminally by the department in cooperation with District Attorney General Tom P. Thompson’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 2007-2008 fiscal year, the department collected $11.2 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 2007-2008 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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