87-0127 - Sales

 

BEFORE THE STATE TAX COMMISSION OF UTAH

_____________________________________

XXXXX

            Petitioner,                                                         :

v.                                                                                 :           INFORMAL DECISION

AUDITING DIVISION OF THE                                :

            UTAH STATE TAX COMMISSION,            :

            Respondent.                                                     :           Appeal No. 87-0127

                                                                                    :           Acct. No. XXXXX

_____________________________________

STATEMENT OF CASE

            This matter came before the Utah State Tax Commission for an Informal Hearing on XXXXX.  James E. Harward, Hearing Officer, heard the matter for and in behalf of the Tax Commission.  XXXXX appeared representing the Petitioner.  XXXXX and XXXXX appeared representing the Respondent.  The Petitioner and the Respondent agreed that the affidavit signed by the president of the Petitioner was false and that the corporation is incorporated under the laws of the state of Utah.  However, the Petitioner argues that the document was placed before the representative of the Petitioner with numerous other documents and he simply signed it without reading it. Petitioner further argues that they had no intent to avoid the payment of tax in the state of Utah.  That the lack of intent is evidenced by the payment of tax in the state of XXXXX.

DECISION AND ORDER

            Based upon the foregoing it is the Decision and Order of the Utah State Tax Commission that the penalty assessed in this matter be affirmed.  The Tax Commission is concerned with the representation of the Petitioner that the document was signed without reading it.  However, the signer of the document was not present to testify or to explain the circumstances surrounding the signing of the non-resident affidavit.  The Tax Commission therefore gives little credibility to that representation.  The Commission finds most persuasive the document itself which indicates that the corporation was not incorporated under the laws of the state of Utah when in fact it was incorporated under the laws of the state of Utah.  The false representation was made under oath.  Based upon these facts, the Commission finds that the 100% fraud penalty was properly assessed and affirms the same.

            DATED this 15 day of October, 1987.

BY ORDER OF THE STATE TAX COMMISSION OF UTAH.

R. H. Hansen                                                                Roger O. Tew

Chairman                                                                      Commissioner

Joe B. Pacheco                                                            G. Blaine Davis

Commissioner   Commissioner