Coffee County Businessman Surrendered on Sales Tax Evasion Charges

Manchester, Tenn. – Nishith (“Nish”) B. Jobalia, age 45, surrendered to officials at the Coffee County Sheriff’s Office on sales tax evasion charges on Tuesday, October 19, 2010. The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment of Jobalia, member of Mala, LLC, d/b/a The Ramada Inn Limited, located in Manchester, Tenn. Bond was set at $30,000.

On Oct.15, 2010, the Coffee County Grand Jury returned a 33 count indictment for Evasion of Sales Tax in violation of Tenn. Code Ann. Section 67-1-1440(g). The indictments charge Jobalia intentionally failed to report sales tax totaling $35,715.00 to the state from Jan. 2005 through Dec. 2007.

 

“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 Charles Trost. “The department cannot and will not allow people engaged in fraudulent tax activities to have a competitive advantage over honest, law-abiding businesspeople.”

 

This case is being pursued criminally by the department in cooperation with District Attorney General Mickey Layne’s Office. Commissioner Trost expressed his appreciation for the excellent cooperation the department has enjoyed with General Layne. 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 2009-2010 fiscal year, the department collected $10.1 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 2009-2010 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.

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