BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, :
v. :
AUDITING
DIVISION OF THE : ORDER
UTAH STATE TAX COMMISSION, : Appeal
No. 87-1159
Respondent. : Tax Type: Severance and Conservation
_____________________________________
The
Utah State Tax Commission hereby approved the Agreement on the terms contained
in the accompanying Stipulation between XXXXX and the Auditing Division of the
Utah State Tax Commission. Upon
compliance with the terms of the Stipulation, the audit will be deemed fully
satisfied. The above-captioned appeal
number 87-1159 is hereby dismissed.
SO
ORDERED by the Utah State Tax Commission this 10 day of December, 1992.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
Petitioner, :
v. : STIPULATION
AUDITING
DIVISION OF THE : Appeal Nos. 87-1159
UTAH STATE TAX COMMISSION, : Tax
Type: Severance and
Respondent. : Conservation
_____________________________________
This
Stipulation is made by and between XXXXX (referred to herein as
"taxpayer," "taxpayers" or by their specific corporate
names) and the State of Utah by and through the Utah State Tax Commission
("Commission") and its counsel, the Utah Attorney General.
RECITALS
WHEREAS,
the Taxpayers filed Utah severance tax and conservation tax returns for oil and
gas produced in production periods beginning XXXXX and ending XXXXX (the
"Production Periods"); and WHEREAS, a controversy has arisen
concerning additional tax liability of Taxpayers for Utah severance tax and
conservation tax due for oil and gas produced during the Production Periods;
and 1 Although the term "severance tax" is used throughout this
Stipulation to refer to the production related tax currently imposed by Chapter
5, Title 58, Utah Code Ann., it is agreed and understood that "severance
tax" is synonymous with the tax sometimes referred to as "occupation
tax" and the assessments referred to herein used the term "occupation
tax" in lieu of "severance tax." WHEREAS, the Auditing Division of the Utah State Tax Commission
("Division") has assessed the Taxpayers for additional severance tax
and conservation tax, related penalty and interest pursuant to the following
three "Statutory Notice of Deficiency" notices: Statutory Notice of
Deficiency dated XXXXX, Statutory Notice of Deficiency dated XXXXX, and
Statutory Notice of Deficiency dated XXXXX (collectively called the
"assessment" or "assessments"); and WHEREAS, XXXXX has
outstanding two refund claims pending before the Appeals Division of the Utah
State Tax Commission, in Appeal No. 87-11592 such refund claims stemming from
Federal Energy Regulatory Commission Orders 306 and 306A; and WHEREAS, XXXXX refund
claim is comprised of $$$$$ in severance tax and $$$$$ in conservation tax,
such amounts totaling $$$$$; and WHEREAS, there exists by virtue of the
assessments $$$$$ in severance tax and $$$$$ in conservation tax, such amounts
being more fully described in Schedule A attached hereto and incorporated
herein for all purposes and totaling $$$$$ thereby reducing XXXXX refund claim
to a net refund of $$$$$; and 2 For purposes of this Stipulation, reference to
Appeal No.87-1159 is deemed to include any existing cases and matters
collectively referred to as 87-1159-A and 87-1159-C. WHEREAS, $$$$$ in severance tax and $$$$$ in conservation tax,
such amounts totaling $$$$$ of the outstanding assessments may be refunded
XXXXX pending the final outcome of certain litigation more fully described at
paragraph 4 under the "Terms of Agreement:" and WHEREAS, it is the
desire of the Taxpayers and the Division to resolve any controversy concerning
any existing or potential assessments or refund claims arising in the production
periods, including those referenced herein, for severance tax and conservation
tax, related interest and penalty for the Production Periods; NOW, THEREFORE, the Taxpayers and the
Division agree as follows:
TERMS OF AGREEMENT
1.
The Division will remit or cause to be remitted to XXXXX $$$$$, said refund
being comprised of $$$$$ in Utah severance tax and $$$$$ in Utah Conservation
Tax within 60 days after the Commission signs the Order approving this
Stipulation.
2.
No additional assertion of Utah severance tax or conservation tax, related
penalty or interest, shall be made by the Division against the taxpayers for
the Production Periods, either by assessment offset, or otherwise, and no
further claim for refund shall be made by the Taxpayers for severance tax or
conservation tax, related penalty, or interest for the Production Periods.
3.
This Stipulation does not constitute a concession or agreement by either party
as to the correctness of the Commission's assessing additional severance or
conservation taxes against taxpayers based on reimbursement of taxes to
taxpayers by various purchasers of taxpayers.
4.
The Division will refund, or cause to be refunded to taxpayers, in amounts
herein under described, an additional $$$$$ in severance tax and $$$$$ in
conservation tax, such amounts totaling $$$$$ if the case currently pending
before the Utah Court of Appeals under Case NO. 920545-CA and styled XXXXX v.
State Tax Commission of Utah is decided favorably to XXXXX. The specific issue that must be decided
favorably to XXXXX is whether additional Utah severance tax or conservation tax
is owed on tax reimbursements made to XXXXX by its purchasers. If the final
decision holds that additional Utah severance tax or conservation tax cannot be
assessed based on tax reimbursements, the Division will refund an additional
$$$$$ to XXXXX, and an additional $$$$$ to XXXXX.
5.
The Division will undertake whatever action is necessary to make the additional
refund referenced in paragraph 4 within 60 days after all applicable appellate
time tables have expired and the judgment of the final court reviewing XXXXX
final and nonappealable.
6.
Taxpayers and the Division agree that this Stipulation is limited to the
currently pending severance tax and conservation tax assessments and refund
claims referenced herein and that this Stipulation in no way involves a
determination of any Utah State royalty issues or claims made by Taxpayers and
currently under review by any Utah agency or court.
7.
This Stipulation is subject to the approval of the Utah State Tax Commission
and shall become final and conclusive between the parties upon approval by the
Utah State Tax Commission as evidenced by a written Order. Should the
Commission fail to approve this Stipulation, it shall be null and void and
shall not be admissible as evidence against either party in any proceeding.
8.
The parties stipulate that the appeal numbered 87-1195 shall be dismissed upon
approval of this Stipulation by the Utah State Tax Commission. Each signatory
to this Stipulation represents that he or she has full authority to execute
this Stipulation on behalf of the party designated.
DATED THIS 19 day of
November, 1992.
XXXXX
ATTORNEY GENERAL, for the
UTAH STATE TAX COMMISSION
AUDITING DIVISION
XXXXX
Assistant Attorney General
DATED THIS 18 day of November, 1992.
XXXXX
Executive Vice President
DATED THIS 18 day of November, 1992.
XXXXX
Executive Vice President
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