Former Sharps Chapel Business Owner Arrested on Sales Tax Evasion Charges

MAYNARDVILLE, Tenn. – The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and subsequent arrest of Dale Williams, age 61, for sales tax fraud. On Oct.3, Williams, former owner of D&A One Stop Market, located in Sharps Chapel, Tenn., was arrested by the Union County Sheriff’s Department.

On Sept. 28, 2010, the Union County Grand Jury returned a 17 count indictment for Evasion of Sales Tax in violation of Tenn. Code Ann. Section 67-1-1440(g), a Class E felony. The indictment charges that Williams intentionally failed to report sales tax totaling $18,049.86 to the state from Aug. 2007 through Dec. 2008.

 

“I hope that this investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies,” said Commissioner Charles Trost. “When sales tax revenues are collected by a retailer they must be remitted to the state. Consumers who pay the tax deserve to know that the money will be used by the state and local governments for the common good.”

 

If convicted, Williams could be sentenced to a maximum of two years in the state penitentiary and fined $3,000 for each count.

 

Prosecution of this criminal case was pursued by the department in cooperation with District Attorney General Paul Phillips’ office. Commissioner Trost expressed his appreciation for the excellent cooperation the department has enjoyed with General Phillips. 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 91 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. In 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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