Knox County Businessman Arrested on Sales Tax Evasion Charge

KNOXVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Gary Wayne Stipes for sales tax evasion.  Revenue Special Agents arrested Stipes, 61, at his residence in Knox County on Wednesday.

On November 2, the Sevier County Grand Jury indicted Stipes on one Class E felony count of sales tax evasion. The indictment charges that from January 2010 through May 2013, Stipes failed to remit $38,636.03 in sales tax from sales at two Speed of Light tanning centers in Sevier County.  Bond was set at $10,000.

“This investigation will serve as a reminder that retailers are not entitled to use or keep sales tax monies,” Revenue Commissioner Richard Roberts said. “When sales tax revenues are collected by a retailer, they are at all times property of the state or local government, and they must be remitted to the state.”

If convicted, Stipes could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000.

The Department pursued the criminal case in cooperation with District Attorney General James Dunn and his staff. 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 2015 fiscal year, it collected $12.6 billion in state taxes and fees and more than $2.4 billion in taxes and fees for local governments.  To learn more about the Department, visit www.tn.gov/revenue.

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