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Special Investigations News Release

For Immediate Release: Aug. 17, 2012

Wilson County Businessman Arrested for Tax Evasion and Theft

Nashville, Tenn. - The Special Investigations Section of the Tennessee Department of Revenue conducted the investigation that led to yesterday's arrest of Daljit Sandhu, age 42, President of Khalsa, Inc., d/b/a Zips Market #4, located in Lebanon, Tennessee. Wilson County Sheriff officials and Tennessee Department of Revenue Special Agents arrested Sandhu at the market on charges of tax evasion and theft. Bond was set at $25,000.

On August 13, 2012, Sandhu was indicted by the Wilson County Grand Jury on twelve Class E felony counts of sales tax evasion in violation of Tenn. Code Ann. Section 67-1-1440(g) and one Class C felony count of Theft of Property over $10,000 in violation of Tenn. Code Ann. Section 39-14-103. The indictments charge Sandhu with tax evasion totaling $12,919.26 during the period January 2009 through December 2009.

"Tennessee's tax structure depends on taxpayers voluntarily complying with the laws," said Revenue Commissioner Richard H. Roberts. "Taxpayers who collect but intentionally do not remit sales tax, breach the public's trust and violate the criminal laws of the State. This case underscores our commitment to rigorous and fair administration of Tennessee's tax laws."

If convicted, Sandhu could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of attempted tax evasion and a maximum of six years in the state penitentiary and fined up to $10,000 for theft of property.

This case was pursued criminally by the department in cooperation with District Attorney General Tom P. Thompson'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).

In addition to collecting state taxes, over $2.0 billion of local sales and business taxes were collected by the department for local governments during the 2012 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.

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