Former Shelby County Business Owner Sentenced on Sales Tax Evasion
Wednesday, November 19, 2008 | 07:24am
MEMPHIS, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment, arrest and subsequent guilty plea of Victoria A. Padgett to one count of sales tax evasion.
On November 17, 2008, Padgett, former owner of Crump-Padgett Antique Gallery, LLC, located in Memphis, Tenn., was sentenced to one year in the state penitentiary, which was suspended except for a period of 30 days, and three years probation. Padgett was ordered to pay $4,471.99 in restitution to the state for unpaid sales tax that Padgett collected but failed to remit from Aug. 1, 2003 through Dec. 31, 2003. Additionally, civil taxes, penalties and interest will be due the state.
“When sales tax is collected from the public and not remitted, it is a breach of the public trust," said Revenue 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 White Collar Crime Unit of District Attorney General William Gibbons’ 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.
Related news: Aug. 19, 2008 – Former Shelby County Business Owner Pleads Guilty to Sales Tax Fraud and Theft of Property (http://www.tn.gov/revenue/newsreleases/2008/padgettplea.htm).