Rutherford County Man Enters Guilty Plea to Sales Tax Evasion
Wednesday, February 11, 2009 | 08:02am
NASHVILLE - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to today’s guilty plea by Habib F. Hanna, age 40, of Smyrna on two Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. 67-1-1440(g).
On Aug. 18, 2006 and again on Jan. 18, 2007, Hanna filed false and fraudulent registration documents with the Rutherford County Clerk’s Office claiming a boat and motor vehicle as gifts and not subject to sales tax. The boat and vehicle were not gifts, but were purchased by Hanna from individuals. By claiming the purchases as gifts, Hanna failed to pay sales tax of $1,366.
Hanna was sentenced to two years in the state penitentiary with all time suspended to probation. He was also fined $2,000 for each count. Hanna made full restitution of the sales tax to the state of Tennessee. Two other felony counts against Hanna were dismissed. Additional penalty and interest will be due the state.
“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 citizens.”
This case was pursued criminally by the department in cooperation with District Attorney William Whitesell’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.
Related news: Dec. 5, 2008 – Rutherford County Man Arrested on Sales Tax Evasion and Forgery Charges (http://news.tennesseeanytime.org/node/681)
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