BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, ) STIPULATION AND
vs. ) RECOMMENDATION
AUDITING
DIVISION, )
STATE TAX
Commission ) Case No. 87-0213
Respondent. )
_____________________________________
The
parties herein jointly stipulate and recommend that the Utah State Tax
Commission accept the terms of settlement as herein set forth and enter its
Order based thereon:
1.
The Respondent mailed its Statutory Notice of Deficiency ("Audit") to
the Petitioner on XXXXX. The Audit
period involved is from XXXXX, including XXXXX.
2.
The tax as calculated by the Respondent in the Audit is $$$$$. A one hundred per cent (100%) fraud penalty
was imposed in the Audit, pursuant to Utah Code Ann. §59-15-8, which provides
in pertinent part that
if any part of the
deficiency is due to fraud with the intent to evade, there shall be added the
greater of $100 or one hundred percent of the total amount of the
deficiency and interest . . . .
The
total tax and penalty as calculated in the Audit is $$$$$.
3.
The interest as calculated in the Audit was $$$$$ as of XXXXX.
4.
Total tax, penalty and interest as calculated in the Audit to XXXXX is $$$$$.
5.
The Petitioner filed a Petition for Redetermination of the Audit on XXXXX.
6.
The Respondent filed an Answer to the Petition for Redetermination on XXXXX.
7.
The principle issue in the Audit is whether Respondent's sales of boats and
accessories were exempt sales in interstate commerce within the meaning of Tax
Commission Regulations A12-02-S44 and S51.
8.
The parties agree that the Petitioner's sales as listed in the Audit, with the
exception of certain subsequent adjustments as hereinafter described, are not
exempt sales made in interstate commerce and are subject to the Utah Sales Tax.
9.
The parties agree that much of the evidence furnished to the Respondent during
the course of the Audit to verify exempt sales was in fact fabricated by
someone other than the Petitioner's customers.
10.
The parties agree that the Petitioner will henceforth collect sales tax on personal
property sold to its customers unless a valid out-of-state delivery certificate
and/or resale exemption certificate is obtained by the Petitioner or the sale
is otherwise exempted under applicable law.
11.
The parties agree that certain sales made taxable in the original Audit are in
fact exempt sales and thus should be removed from the Audit. These sales are listed in the letter dated
XXXXX from XXXXX to XXXXX and XXXXX, which letter is incorporated herein by
reference and made a part hereof.
12.
By the terms of the aforesaid letter, and the adjustment to the original Audit,
the parties agree that the original Audit should be adjusted so that the total
tax, penalty and interest calculated to XXXXX is $$$$$. This figure includes $$$$$ in tax, $$$$$ as
fraud penalty and $$$$$ in interest calculated to XXXXX.
14.
The parties agree that in compromise and settlement of the above-captioned
matter, that they jointly recommend that any and all interest be waived by the
Utah State Tax Commission provided that the Petitioner pays the $$$$$ to the
Utah State Tax Commission by XXXXX.
15.
The Petitioner agrees that it will pay $$$$$ to the Utah State Tax Commission
in tax and penalty and interest by XXXXX provided that the Utah State Tax
Commission approves this Stipulation and enters and appropriate Order thereon.
16.
The Respondent agrees that in the event the Utah State Tax Commission approves
this Stipulation and Recommendation that it (the Respondent) will not audit the
years prior to XXXXX.
RESPECTFULLY
SUBMITTED and dated this 28 day of September, 1987
XXXXX XXXXX
Attorney for Respondent Attorney
for Petitioner
ORDER
Being fully advised in the premises, the Tax
Commission hereby incorporates and adopts as its order the terms of the
foregoing Stipulation and Recommendation.
DATED THIS 2nd day of October, 1987.
R. H.
Hansen, Chairman
ABSENT
Roger O.
Tew, Commissioner
Joe B.
Pacheco, Commissioner
G. Blaine
Davis, Commissioner
^^