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