Former Tipton County Business Manager Arrested on Sales Tax Evasion and Theft Charges

Munford, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest of Kawaljeet “Sonny” Bains, age 36, former manager of H-K-S Fuel, Inc., located at 488 Beaver Road in Munford, Tenn. Bains was arrested at his home by special agents of the Department of Revenue and officers with the Collierville Police Department.

 

On Nov. 2, 2009, Bains was indicted by a Tipton County Grand Jury on six Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class B felony count of Theft of Property valued over $60,000 in violation of Tenn. Code Ann. Section 39-14-103. The indictments allege that between May 2006 and Dec. 2007, Bains, as manager of H-K-S Fuel, Inc., filed false and fraudulent sales tax returns and intentionally failed to remit $60,742.15 of collected sales tax. If convicted, Bains could be sentenced to serve a maximum of two years in the state penitentiary and fined a maximum of $3,000 on each of the Class E felony counts and to a maximum of twelve years in the state penitentiary and fined a maximum of $25,000 on the Class B felony count. Additional civil taxes, penalties and interest will be due the state.

 

“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," said Revenue Commissioner Reagan Farr. "This investigation underscores our department's ongoing efforts to enforce Tennessee's tax laws."

 

This case was pursued criminally by the department in cooperation with Tipton County District Attorney Michael Dunavant’s office. Citizens who suspect violations of 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 2008-2009 fiscal year, the department collected $10.2 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 2008-2009 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.TN.gov/revenue.