BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
XXXXX, :
XXXXX, )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. ) AND FINAL DECISION
:
)
COLLECTION
DIVISION OF THE : Appeal Nos. 86 0156 to 86 0157
STATE TAX
COMMISSION OF UTAH, ) Acct. No. XXXXX
: Account
No. XXXXX
Respondent. )
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a Formal Hearing on
XXXXX. James E. Harward, Hearing
Officer, and XXXXX, Appeals Supervisor, heard the matter for the Tax
Commission. XXXXX appeared representing
the Petitioners. At the outset of the
hearing, it was determined that the record of the Informal Hearing should be
made a part of the Formal Hearing.
Based
upon the foregoing, the Commission makes its:
FINDINGS OF FACT
1. On or about XXXXX, Articles of Incorporation
for XXXXX, were filed with the State of Utah.
2. In the Articles of Incorporation, XXXXX was
an original director of XXXXX.
3. On XXXXX, XXXXX resigned from his position and
duties with XXXXX.
4. The resignation and filing notice of the
resignation was timely filed and paid with the state of Utah.
5. The corporation was run by XXXXX, a brother
to the Petitioner.
6. Petitioner was not involved in the management
of the business.
7. Petitioner was released from any liability
from any claims, duties, debts, or responsibilities arising during the period
the Petitioner was associated with the corporation by the president of XXXXX,
XXXXX.
8. No payments have been made on the quarters
in question either for the withholding or for the sales tax by the corporation
or a representative of the corporation.
9. Petitioner had no notice of his brother's
mismanagement or failure to pay the taxes.
CONCLUSIONS OF LAW
1. Utah Code Ann. § 59-10-22(3) (Supp. 1986) provides:
Any person required to
collect, truthfully account for, and pay over the Utah sales, use, or
withholding tax imposed by Utah law who willfully attempts in any manner to
evade or defeat any such tax or the payment thereof shall in addition to other
penalties provided by law, be liable to a penalty equal to the total amount of
the tax evaded, not collected, not accounted for or not paid over.
2. Utah Code Ann. § 59-10-22(4) (Supp. 1986) provides:
As used in this
Section, "person" means officer, employee, or agent of a corporation,
or a partnership, and, also, includes any other natural person, corporation,
association, partnership, trust, or any other artificial entity, who is charged
by Title 59, with the responsibility of accounting for, collecting, or paying
over the Utah sales, use, or withholding tax.
3. Petitioner was not responsible for
accounting, collecting, or paying over the sales and use, or withholding
tax. This responsibility was his
brother's who ran the business.
FINAL DECISION
Based
on the foregoing, it is the Decision and Final Order of the Utah State Tax
Commission that personal assessment against Petitioner, XXXXX be waived. The Collection Division of the Utah State
Tax Commission is ordered to adjust its records in accordance with this
decision.
DATED
this 7 day of May, 1987.
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