BEFORE THE STATE TAX
COMMISSION OF UTAH
_____________________________________
UTAH STATE TAX COMMISSION, : ORDER
DENYING
COLLECTION
DIVISION, : PETITION FOR TEMPORARY
Petitioner, : RELIEF
v. : Appeal No. 87-1140
XXXXX )
Respondent. : Sales Tax No. XXXXX
_____________________________________
STATEMENT OF CASE
On XXXXX, the Utah State Tax Commission
rendered an Informal Decision revoking Respondent's sales tax license No.
XXXXX. This decision was served upon
Respondent on XXXXX. On XXXXX,
Respondent filed a Petition for Temporary Relief from Order with the Tax
Commission. On XXXXX, David J.
Angerhofer, Hearing Officer, held a telephone conversation with XXXXX, Attorney
for Respondent, to discuss the petition.
Respondent stated that he has approximately $$$$$ worth of inventory
which, if liquidated at retail level, would probably pay all priority lien
holders, would pay the tax obligation in full, and would be at least a partial
payment to the unsecured creditors.
Petitioner projects sales of from $$$$$ to $$$$$ during XXXXX, from
$$$$$ of inventory. If, on the other
hand, the bank sells the inventory at wholesale, it will recover only ¢¢¢¢¢ on
the dollar. Respondent stated that it
will change locations to a better area to increase retail sales, that the
majority if not all of the tax liability will be paid by the end of the holiday
season, that Respondent will set up a trust account and make weekly deposits of
sales tax, and that Respondent will stipulate with the Tax Commission to be
subject to an audit at any time to verify that Respondent is properly
collecting sales tax. Respondent stated
that it intends to file a Chapter 11 bankruptcy proceeding to either reorganize
its debts or to liquidate its assets in a fashion as to realize the maximum
value. It is in the best interest to the State to permit Respondent to remain
in business in order for it to file a Chapter 11 bankruptcy proceeding. If the State allows Respondent to remain in
business, a significantly greater recovery will result. The Tax Commission finds no basis on which
to grant the Petition for Temporary Relief from Order. Respondent has not posted a bond in the
amount of the tax, penalty, and interest that is currently delinquent and due,
and Respondent has not opened an account in a local financial institution for
the purpose of making weekly deposits in the amount of the current accruing
sales tax liability.
ORDER
Based
on the foregoing, it is the Order of the Utah State Tax Commission that
Respondent's Petition for Temporary Relief from Order is hereby denied. The Informal Decision rendered on XXXXX, and
revoking sales tax license No. XXXXX shall remain in effect.
DATED
this 26 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
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