Nashville Business Owner Surrenders on Sales Tax Evasion Charges

NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the March 13, 2010 surrender of Mary Z. Dawoud to the Metropolitan Nashville Police Department on sales tax evasion charges. Bond was set at $25,000.

 

Dawoud was indicted by the Davidson County Grand Jury on four Class E felony counts of hindering or impeding the collection of sales tax in violation of Tenn. Code Ann. Section 67-1-1440(d) by knowingly filing false sales tax returns on behalf of Real Discount Tobacco and Beer for the periods Mar. 1, 2007, through June 30, 2007. The alleged fraud resulted in an amount of unreported taxable sales totaling $266,029.75 and the failure to remit sales tax due totaling $21,045.35. If convicted, she could be sentenced to a maximum of two years and fined $3,000 for each Class E felony count.

 

“This investigation should serve as a reminder that retailers have no legal entitlement to sales tax monies,” said Commissioner Reagan Farr. “Once these revenues are collected by a retailer they must be remitted to the state. Consumers pay the tax with the belief the money will be used by the state and local governments for the common good.”

 

This case was pursued criminally by the department in cooperation with the Davidson County District Attorney General Victor S. Johnson’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 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

 

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View this news release online. Go to www.TN.gov/revenue and click on Newsroom.