Former Sumner County Tobacco Store Manager Enters Guilty Plea to Sales Tax Evasion

NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to today’s guilty plea of Ajaykumar C. Parikh, the former manager of Portland Discount Tobacco located in Portland, Tenn. Parikh, age 54, pleaded guilty to seven Class E felony counts of Sales Tax Evasion. Parikh was sentenced to two years in jail. The sentence was suspended and Parikh was placed on two years probation.

 

In July 2009, Parikh was indicted by a Sumner County Grand Jury on 24 Class E felony counts of Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class C felony count of Theft of Property valued over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. The indictments charge that Parikh failed to remit $28,987.03of sales tax due the state of Tennessee by intentionally filing false and fraudulent sales tax returns from April 2004 through March 2006.

 

“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.”

 

This case was pursued criminally by the department in cooperation with Sumner County District Attorney General L. Ray Whitley. 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 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.

 

 

Note to media: Photo attached.

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