Former Davidson County Business Owner Surrenders on Sales Tax Evasion and Theft Charges

NASHVILLE, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to the indictment of Samir “Sam” Z. Elekaili, age 35, former manager of Glenrose Phillips 66 located at 201 Glenrose Avenue in Nashville, Tenn.  Elekaili surrendered himself to officials at the Metro-Nashville Police Department yesterday on charges of sales tax evasion and theft of property.On May 16, 2008, a Davidson County Grand Jury indicted Elekaili on 14 Class E felony counts of sales tax evasion and one Class D felony count of theft of property over $10,000.  According to the indictments, Elekaili failed to report taxable sales of $482,096.19 and intentionally failed to remit $39,239.69 in sales tax he collected from April 1, 2004 to June 30, 2005.

If convicted, Elekaili could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each sales tax evasion count. He also faces a maximum sentence of four years in the state penitentiary and a fine up to $5,000 for the theft count. Additionally, civil taxes, penalties and interest will be due the state.

“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’s trust. This conviction underscores our commitment to collecting all taxes due the state of Tennessee.”

This case was pursued criminally by the department in cooperation with 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).