Knoxville Businessman Surrendered for Sales Tax Evasion Charges

NASHVILLE, Tenn. - Gunvantrai H. Patel, 56, president of Shree Balaji, Inc., d/b/a Family Inns of America, 4300 Rutledge Pike, Knoxville, Tenn., surrendered himself for arrest yesterday to authorities at the Knox County Sheriff's Office. A warrant for his arrest was issued after the Knox County Grand Jury returned a 36 count sealed indictment relating to evasion of sales tax due the State of Tennessee. Bond was set at $7,500. The investigation was conducted by the Special Investigations Section of the Tennessee Department of Revenue.

"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. "This investigation underscores our department's ongoing efforts to enforce Tennessee's tax laws."

Patel was indicted by the Knox County grand jury on February 28, 2007, on 23 counts of evading sales tax and 13 counts of theft. The 23 counts charge Patel with unlawfully and knowingly evading and defeating sales tax collected due to the State of Tennessee by failing to file sales tax returns and filing a false sales tax return on behalf of Shree Balaji, Inc. d/b/a Family Inns of America located at 4300 Rutledge Pike, Knoxville, Tenn. Evading tax is in violation of Tennessee Code Annotated Section 67-1-1440(g), a Class E felony. Patel was also charged with 13 counts of theft of property that included one Class A misdemeanor, 11 Class D felonies, and one Class C felony.