South Carolina Department of Revenue (SCDOR) agents today arrested the owner of a Hilton Head restaurant and bar and charged him with three counts of failing to file tax returns and/or pay taxes and one count of operating without a retail license.

Timothy H. Singleton, 50, of Hilton Head Island, is the owner of Ruby Lee's South, LLC, a restaurant and bar, whose retail license was revoked in March 2018 for failure to pay business taxes, according to warrants. Despite being told at the time to close his business, the warrants allege Singleton continued to engage in retail sales, including liquor by the drink from April 2018 to November 2020.

Singleton, according to the warrants, failed to timely file sales tax returns during this period thereby failing to report $2.39 million in gross sales. He failed to remit $156,927 in sales tax collected during this period. He also failed to timely report $511,773 in sales for liquor by the drink and failed to pay $25,588 in liquor-by-the drink taxes. 

If convicted, Singleton faces a maximum sentence of one year in prison and/or a fine of $10,000 for each count of failing to file, and 30 days in jail and/or a fine of $200 for each count of operating a business without a license. He is being held in the Beaufort County Detention Center pending a bond hearing.

The SCDOR is committed to the fair administration of tax laws. By taking enforcement action against noncompliant taxpayers, the Department seeks to prevent unfairly increasing the tax burden on those who do comply. 

If you suspect or know of anyone or a business that has committed a state tax crime, such as tax evasion or tax fraud, contact SCDOR Criminal Investigation and submit a Tax Violation Complaint Form (CID-27) to criminalinvestigation@dor.sc.gov or mail it to SCDOR, CID, 300A Outlet Pointe Boulevard, Columbia, SC 29210.   

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