Former Shelby County Businesswoman Sentenced After Being Found Guilty of Sales Tax Evasion
Released on Tue, Mar 03, 2009 - 3:45 pm under
MEMPHIS, Tenn. - The Tennessee Department of Revenue’s Special Investigations Section conducted the investigation that led to the sentencing of Brenda Ifabiyi, former owner of Ayokas Liquor Store located at 4907 Airways Boulevard in Memphis. Ifabiyi was found guilty of two counts of sales tax evasion during a weeklong trial in December before the Honorable John Fowlkes, Jr. in Division 6 of the Shelby County Criminal Court. She was sentenced to one year of supervised probation and ordered to pay $12,237 to the state for sales tax that she failed to remit. Additional penalty and interest will be due the state.
Ifabiyi purchased over $194,050 in wine and liquor from January 2002 through December 2004, yet reported sales of only $56,660 to the department. She reported the business collected $5,217 in sales tax, but actually collected $17,454 from taxpayers.
“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 Bill Gibbon’s office. 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 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 2007-2008 fiscal year, the department collected $11.2 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 2007-2008 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.Tennessee.gov/revenue.
Related news: March 15, 2007 – Memphis Businesswoman Arrested for Theft of Property and Violations of State's Revenue Laws (http://tennessee.gov/revenue/newsreleases/2007/lfabiyi.htm)
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