BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
COLLECTION
DIVISION OF THE : INFORMAL DECISION
UTAH STATE TAX COMMISSION, : SALES
TAX REVOCATION
Petitioner, :
v. :
XXXXX ) Appeal
No. 87 1022
Respondent. : Sales Tax No. XXXXX
_____________________________________
STATEMENT OF CASE
This
is a decision from a sales tax license revocation hearing for XXXXX, sales tax
license No. XXXXX. A license revocation
hearing was held on XXXXX, in the offices of the Utah State Tax
Commission. James E. Harward, Hearing
Officer, heard the matter for the Tax Commission. XXXXX represented the Petitioner. XXXXX represented the Respondent.
Petitioner
presented evidence that the liability periods in question are XXXXX. As of the date of the liability the balance
owing exceeded $$$$$. XXXXX owns all of the assets of XXXXX, which leases from
them. XXXXX had bought the assets of
the XXXXX from XXXXX who had incurred a large sales tax liability. These assets were purchased with the tax
liens in place. XXXXX, President and
principle owner of XXXXX, had filed a Chapter 11, and had submitted a plan for
reorganization, with a hearing scheduled XXXXX.
XXXXX,
is not in bankruptcy. The plan included
an agreement by XXXXX to pay in full a quarter in which XXXXX was delinquent,
to keep all filings and payments current, and to pay over one-half of the
yearly membership renewals by the end of XXXXX. This would be applied towards the liability which XXXXX had
incurred for the XXXXX. Petitioner
recommended in a letter dated XXXXX, that if Respondent adheres to the plan
then a monthly payment schedule could be arranged.
The
revocation hearing was then continued.
On XXXXX, Petitioner recommended the revocation of Respondent's sales
tax license on the basis of Respondent's delinquency and the inability to
retire the balance owing and to remain current with regards to accruing
liability while continuing to conduct business. Respondent has not filed or paid its XXXXX sales and use tax
return or withholding return.
FINDINGS
Respondent
was issued sales tax license No. XXXXX on XXXXX. Respondent was responsible for the collection of sales taxes on
the sale of goods and services and was required to remit these taxes to the
State Tax Commission. Utah Code Ann.
§59-12-107 (1953).
Respondent
did not properly remit the full amount of sales tax collected each quarter.
The
Utah State Tax Commission is vested with the authority to revoke the license of
"any person violating any provisions of this chapter Sales and Use Tax
Act] . . . ." Utah Code Ann.
§59-12-106 (1953).
DECISION AND ORDER
Based
on the foregoing, it is the Decision and Order of the Utah Tax Commission that:
1.
Respondent's sales tax license No. XXXXX is hereby revoked for failure to
comply with the provisions of the Utah Sales and Use Tax Act, Utah Code Ann.
§59-12-107 (1953).
2.
Respondent is ordered to close the doors of the XXXXX to business and to
deliver its sales tax license to the Utah State Tax Commission. Failure to comply with this order may result
in criminal prosecution being taken against Respondent.
The
revocation of Respondent's sales tax license is effective immediately unless
the Respondent requests in writing, within three (3) working days from receipt
of this decision, that the Tax Commission stay the execution of this order for
thirty days, provided the Respondent is able to prove that the following
conditions have been met:
a.
A bond has been posted in the amount of the tax, penalty, and interest that is
currently delinquent and due. The bond
must be in the form of a cashier's check, certificate of deposit, surety bond,
or cash; and
b.
An account has been opened in a local financial institution by the end of the
first banking day following receipt of this decision. The account must name the Respondent's company and the Utah State
Tax Commission as co-owners. In
addition, the Respondent must make weekly deposits into the account in the
amount of the current accruing sales tax liability.
DATED
19 day of February, 1988.
BY ORDER OF THE STATE TAX COMMISSION O UTAH.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner
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