Jackson, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to the arrest of Mutee Hussein Fadah, age 39, of Madison County, on Sept. 16, 2009. Fadah, the former owner of J Mart, located at 1625 E. Chester Street, was arrested by the Madison County Sheriff’s Department on two counts of failure to pay sales tax and one count of theft of property.
The indictments charge that Fadah unlawfully impeded the State of Tennessee in the collection of sales tax during the period of May 2005 through Feb. 2006, a violation of Tenn. Code Ann. Section 67-1-1440(d). The indictments also charge that Fadah knowingly deprived the State of Tennessee of money in excess of $1,000, a violation of Tenn. Code Ann. Section 39-14-103.
“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity," said Revenue Commissioner Reagan Farr. "This investigation underscores the department's ongoing efforts to enforce Tennessee's tax laws."
This case was pursued criminally by the department in cooperation with District Attorney General Jerry Woodall’s office. 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 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