After months of investigating, FOX 40 News exposes a local business that was pocketing hundreds of thousands in sales tax customers paid instead of turning it over the state to use for roads, education, medicaid and more.
In November, FOX 40 News revealed that Mississippi is losing out on up to $100 million each year in sales tax revenues because outdated equipment at the State Tax Commission cannot keep up with businesses that are charging customers sales tax and not turning it over to the state.
However, a state audit revealed that Donny Wilson of Wilson Auto Sales in Brookhaven forged documents to pocket nearly $360,000 in sales tax money.
According to Lincoln County District Attorney Dee Bates, Wilson sold customers a car in which they paid the correct amount of sales tax, but the true bills of sale never made it to the state.
Instead, Wilson falsified a document claiming the customer traded in a car, making it seem like the customer paid less in sales tax than they really did. In turn, Wilson turned over the lesser amount in sales tax as indicated by the false document to the state. He then pocketed the difference from the higher, accurate sales tax paid by the unassuming customer.
Bates told FOX 40 News the shady deals turned up in a state audit a few years back, and revealed that Wilson's business had been using the technique for nearly give years.
In a plea deal, Wilson pled guilty to four of 32 tax evasion charges. A Lincoln County judge sentenced to no jail time, but mandated that Wilson pay back $359,000 to the state to be used in the general fund.
FOX 40 News called Wilson at his business, which is still open in Brookhaven, to give him a chance to explain the charges against him and why he did it. He declined an interview saying there is still pending litigation about how much he owes the State Tax Commission. Instead, he referred FOX 40 News to his lawyer, but as of Monday there has been no response.
