Car dealer says he’s innocent of tax evasion
BY PATRICIA LYNCH KIMBRO
THE DICKSON HERALD
A Dickson car dealer who was indicted this week on sales tax evasion says he’s innocent of all charges and fears the allegations will hurt his reputation.
Glen Robert Bailey, 57, who operates and manages Notable Auto Sales at 706 Henslee Drive, was arrested by special agents of the Tennessee Department of Revenue on charges of sales tax evasion on Dec. 11.
The special investigations section of the department of revenue conducted the investigation that led to the indictment and subsequent arrest of the car dealer.
Bailey is free on a $1,000 bond and is scheduled for a court appearance in Dickson County Circuit before Judge Larry Wallace on Jan. 14.
The case was pursued criminally by the department in cooperation with District Attorney General Dan Alsobrooks’ office.
Bailey said he has not seen the indictment nor charges, but believes the allegations stem from “two minor sales tax issues on two cars that I purchased for the business.” “I’ve been in business for eight years in Dickson and completed hundreds of car deals and I’ve never had a problem,” Bailey said.
Bailey said he felt the department of revenue was “picking on those two vehicles” he said were purchased through his business for resale purposes.
“According to the law you can purchase vehicles for resale purposes which do not require taxes,” Bailey said. “I am innocent of any of those charges. I haven’t been given a copy of the charges, but I do know this has disparaged my reputation.”
If convicted on the charges of sales tax evasion, which are Class E felonies, Bailey could face a maximum term of two years in the state penitentiary and be fined $3,000 for each count, according to a press release from the state Department of Revenue.
The indictments accused Bailey of failing to remit $1,612.32 in sales tax to the State of Tennessee by intentionally filing false and fraudulent documents with the Dickson County Clerk’s office on May 11 and May 18 last year, which purposefully understated the actual sales prices of two vehicles he registered, according to the release.
“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.
Citizens who suspect violations of the state’s revenue laws should call the toll-free fraud hot line at 800-372-8389.
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 collects approximately 92 percent of total state tax revenue.
During the 2006-2007 fiscal year, the department collected $11 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 same 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, according to the news release.