Business owner pleads guilty to sales tax evasion

Thursday, July 8, 2010 at 4:09pm
Staff reports

The “discount” from the Real Discount Tobacco & Beer on Nolensville Pike apparently came from the owner not paying sales tax.

Shop owner Mary Z. Dawoud pleaded guilty Thursday to two counts of sales tax evasion, and received a sentence of two separate two-year terms to run consecutively. That sentence was, however, suspended, and Dawoud was place on probation.

The Special Investigations Section of the Tennessee Department of Revenue claimed that its investigation of the discount store at 3916 Nolensville Pike showed Dawoud, 36, filed fraudulent sales tax returns and failed to pay $21,045.35 in sales tax between March 2007 and June 2007.

As part of her plea, Dawoud agreed to pay restitution to the state. A hearing to consider diversion is set for Aug. 20, 2010.

“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.”

The Davidson County District Attorney’s office tried the case.

2 Comments on this post:

By: HokeyPokey on 7/9/10 at 6:35

“The majority of businesses pay appropriate taxes,” said Revenue Commissioner Reagan Farr.
A majority, maybe. But every day I buy something, somewhere, where no receipt is printed by the register. I'm not accusing those businesses of cheating (except for those that have already been busted for the same practice) I just think its Farr more common than St. Reagan wishes to admit.

And it's also the as-yet fully unexplored problem with making the fishers on the gulf whole. All their lives, for generations, most of them have worked on a cash-for-fish basis and when they actually have to show some documentation on their earnings, like tax returns, they're up the figurative creek.

By: govskeptic on 7/10/10 at 5:24

The Commissioner's remark that most business pay their taxes is based on what I wonder!? The punishment in this case just sets up future violations by many others hoping their punishment would be just as lenient if caught. No lessons taught to society other than "take your chances", you may just get away with it.