Managing Partner of Zack's #4 Phillips 66 Sentenced on Theft Charge

NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to today’s sentencing of Iyaed “Eddie” Afifa, manager and part owner of Zack’s #4 Phillips 66, on one count of theft over $10,000.00.

 

Afifa (age 43) pleaded guilty to the charge that between Jan. 2003 and Aug. 2004, as manager of Zack’s #4 Phillips 66, he filed false and fraudulent sales tax returns and intentionally failed to remit $86,294.88 of collected sales tax. On April 15, 2010, Afifa entered a guilty plea to Theft over $10,000.00, a Class C felony, and made full restitution to the Department of Revenue. Today, the judge placed Afifa on five years of probation. If Afifa successfully fulfills his probationary terms, he will be granted judiciary diversion pursuant to the provisions of Tenn. Code Ann. Section 40-35-313.

 

“The majority of businesses pay appropriate taxes,” said Revenue Commissioner Reagan Farr. “This case serves as a warning to others who think they can get away with tax fraud in Tennessee. We will continue to pursue criminal activity and prosecute tax evaders to maintain fairness in our tax structure for Tennesseans.”

 

This case was pursued criminally by the department in cooperation with the office of District Attorney General Victor S. Johnson, III. Citizens who suspect violations of the Tennessee 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 $10.2 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 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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