A tire dealer in Cleveland is facing allegations of sales tax evasion from the Tennessee Department of Revenue.
Andrew W. Thompson Sr., president of Cleveland Tire Center Inc., was indicted Oct. 26 by the Bradley County (Tenn.) Grand Jury on 36 counts of tax evasion. Mr. Thompson surrendered to authorities Nov. 15, according to a Department of Revenue press release.
The department claims that between Jan. 1, 2000, and Dec. 31, 2002, Mr. Thompson deliberately failed to report a total of nearly $1.3 million in tire sales and remit the nearly $106,000 in sales taxes due on those sales. If convicted, he would face a maximum of two years in state prison and a $3,000 fine on each count. He also would have to pay the tax he allegedly owes, with interest and penalties.
Mr. Thompson was arraigned Nov. 28 and, according to a spokeswoman for the Tennessee Department of Revenue, entered a plea of not guilty. A spokeswoman for Cleveland Tire Center said Mr. Thompson had no comment on the charges.
The Web site for Cleveland Tire Center describes it as a Goodyear and Dunlop dealership offering a full line of auto service and repair, as well as road service on tractor/trailers.