BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX,
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
)
COLLECTION
DIVISION OF THE : No. 86-0105
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
:
Respondent. )
_____________________________________
STATEMENT OF CASE
Pursuant
to the stipulation entered at the pre-hearing conference this decision is made
without oral argument and based upon the documentation and evidence submitted
and made part of the file.
Therefore
based upon that representation and understanding, the Tax Commission makes its
FINDINGS OF FACTS
1. In XXXXX XXXXX purchased all the oil and gas
produced by XXXXX. As part of the
purchase, XXXXX prepared and filed the Occupation Conservation and Mineral
Production Withholding tax returns, and paid the required taxes and royalty
payments to the owners on the oil and gas produced by the wells of which XXXXX
was the operator.
2. In the spring of XXXXX, XXXXX closed its
operation in the XXXXX and disposed of its interest in the oil and gas
properties XXXXX advised XXXXX that it would no longer retain its rights to
purchase crude oil and gas and thus would no longer act as disperser for XXXXX
and the other owners. As a result,
XXXXX would no longer be responsible for the collection, filing, and payment of
taxes.
3.
The Petitioner, thereafter, purchased a
system in April to automate its accounting system for the purposes of
accounting, filing, and paying taxes.
Although purchased in April it was not operational until September of
XXXXX. In addition, Petitioner hired a
law firm to educate employees on Utah taxes.
4. On March 15, XXXXX, the occupation taxes in
the sum of $$$$$ were paid for the XXXXX year.
5. The Tax Commission assessed a penalty of
$$$$$ on the XXXXX fourth quarter occupational tax return claiming that the tax
had not been paid timely. That penalty
has been paid by Petitioner and 2 request for the waiver and refund of the same
as been made by the Petitioner.
CONCLUSIONS OF LAW
1. Utah Code Ann. § 59-5-67 provides for an occupation
tax to be imposed upon the Petitioner.
Utah Code Ann. § 59-5-71 provides that tax must be filed and paid on or
before June 1 of the year next succeeding the calendar year.
2. The only exception to the filing provisions
of 59-5-71 is (2)(a) which requires the quarterly filings be made where the
preceding calendar year was $$$$$ or more in tax obligation.
3. Petitioner did not have a tax obligation for
the tax year XXXXX. XXXXX had the obligation.
4. Petitioner timely filed within the provisions
of the Utah Code. Therefore penalty was not properly assessed.
5. Petitioner's request is for waiver of
penalty and interest as it relates to these periods and is not a petition for
redetermination of the tax due.
Therefore, the Commission declines to consider any overpayment of tax
due to striper or exempt wells.
FINAL DECISION AND ORDER
Therefore,
based upon the foregoing, it is the Final Decision and Order of the Utah State
Tax Commission that all tax penalties associated with the XXXXX occupation tax
plus interest be waived. It is so
ordered.
DATED
this 4 day of February, 1988.
BY ORDER OF THE STATE TAX COMMISSION OF UTAH.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner