Washington County Business Owner Arrested for Sales Tax Evasion and Theft
Wednesday, November 19, 2008 | 07:20am
JONESBOROUGH, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue arrested Gonzalo Alverez Moralez, age 53, president of Ornelas, Inc., dba La Carreta Mexican Restaurant in Gray, Tenn., after the Washington County Grand Jury returned an 18-count indictment relating to evasion of sales tax due the State of Tennessee. Bond was set at $54,000.
On Nov. 10, 2008, the Washington County Grand Jury returned true bills for 18 Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g). The indictments charge Moralez with failing to report taxable sales totaling $635,995 and failing to remit collected sales tax totaling $60,105 from Oct. 1, 2002 through March 31, 2004.
“The Department of Revenue is committed to applying Tennessee’s tax laws and policies uniformly to all taxpayers to ensure a level playing field,” said Revenue Commissioner Reagan Farr. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest businesspeople.”
If convicted, Moralez could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each Class E felony count. Additionally, civil taxes, penalties and interest will be due the state.
This case was pursued criminally by the department in cooperation with District Attorney General Tony Clark’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.