Owner of Real Discount Tobacco & Beer Pleads Guilty to Sales Tax Evasion

Thursday, July 08, 2010 | 01:37 pm
NASHVILLE - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to today’s guilty plea of Mary Z. Dawoud, owner of Real Discount Tobacco & Beer located at 3916 Nolensville Pike, on two counts of sales tax evasion. Dawoud was sentenced to two separate two-year terms to run consecutively. The sentence was suspended and she was placed on probation.
Dawoud (age 36) acknowledged that between March 2007 and June 2007, as owner of Real Discount Tobacco & Beer, she filed false and fraudulent sales tax returns and intentionally failed to remit $21,045.35 of collected sales tax. Dawoud entered a guilty plea and agreed to make restitution to the Department of Revenue. Today, the judge set a hearing for Aug. 20, 2010 to consider diversion.
“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 the office of District Attorney General Victor S. Johnson, III. 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 2009-2010 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 2009-2010 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.
Related news: March, 15, 2010 - Nashville Business Owner Surrenders on Sales Tax Evasion Charges (http://news.tennesseeanytime.org/node/4758).