Knox County Businessman Surrenders on Sales Tax Evasion Charges

KNOXVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the indictment and arrest of Mohammad Shahidul Islam for sales tax evasion and theft.  Islam, 42, surrendered Friday to Revenue Special Agents at the Knox County Sheriff’s Department Detention Facility.

On November 3, the Knox County Grand Jury indicted Islam on 20 Class E felony counts of sales tax evasion and one Class C felony count of theft of property over $10,000.  The indictments charge that from February 2011 through October 2012, Islam failed to remit to the state sales tax revenue collected from sales at South Side Market.  Bond was set at $20,000.

“The majority of businesses pay appropriate taxes,” Revenue Commissioner Richard Roberts said. “I hope this case will serve 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 assure fairness in our tax structure.”

If convicted, Islam could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of attempted sales tax evasion. He could be sentenced to a maximum of six years in the state penitentiary and fined up to $10,000 for theft of property.

The Department pursued this criminal case in cooperation with District Attorney General Charme Allen and her 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.

###