Former Knox County Business Owner Arrested on Sales Tax Evasion and Theft Charges

Knoxville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Raymond Karl Walker, 65. Walker is a former vice president of Home Filtration, Inc., located in Powell, Tenn.

Thursday, Special Agents of the Tennessee Department of Revenue arrested Walker at his residence in Knoxville. Bond was set at $10,000.

On September 9, the Knox County Grand Jury indicted Walker on 27 Class E felony counts of sales tax evasion and one Class C felony count of theft of property of over $10,000. The indictment charged that Walker willfully attempted to evade $16,438.63 in sales tax due the state from September 2010 to December 2012.

"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Revenue Commissioner Richard Roberts. "Taxpayers who collect but intentionally do not remit sales tax breach the public's trust and violate the criminal laws of the state."

If convicted, Walker could be sentenced up to two years in the state penitentiary and fined up to $3,000 for each count of tax evasion. He could be sentenced up to six years in the state penitentiary and fined up to $10,000 for the one count of theft.

The Department pursued prosecution of this criminal case with District Attorney General Charme Allen'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 and the collection of taxes and fees associated with those laws. The Department collects about 87 percent of total state revenue. During the 2013 fiscal year, it collected $11.7 billion in state taxes and fees and more than $2.2 billion in taxes and fees for local governments.  To learn more about the Department, visit www.TN.gov/revenue.

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