MEMPHIS -The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to guilty pleas by Guang Huang, age 60, owner of KK Market, 2200 Pendleton Street, Memphis, Tenn., and his son, Jian Huang, age 33.
On Sept. 17, 2009, Guang Huang pleaded guilty to Bribery of a Public Servant in violation of Tenn. Code Ann. Section 39-16-102, a Class C felony; Theft of Property over $10,000 in violation of Tenn. Code Ann. Section 39-14-103, a Class C Felony; and Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(d), a Class E Felony. Guang Huang was sentenced to three years for the Bribery and Theft charges, and two years for the Tax Fraud charge. The sentences were suspended and Huang was placed on three years probation and ordered to pay $38,446.00 in restitution to the State of Tennessee.
Huang’s son, Jian, pleaded guilty to Sales Tax Evasion in violation of Tenn. Code Ann. Section 67-1-1440(d), a Class E Felony, and was placed on Judicial Diversion for two years.
“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 District Attorney General William L. Gibbon’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