88-2838 - Corporation Franchise

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

: ORDER

Petitioner, :

v. :

AUDITING DIVISION, UTAH : Case No. 88-2838

STATE TAX COMMISSION, : Audit Period:

Respondent. : XXXXX

: XXXXX

_____________________________________

Based upon a Stipulation and Settlement and Motion filed jointly by Petitioner, XXXXX ("XXXXX"), by and through its counsel of record, and Respondent, Auditing Division, Utah State Tax Commission ("Auditing Division"), the Tax Commission hereby finds and orders as follows:

1. The entire gain from the sale of XXXXX common stock will be removed from the audit and as much of the remaining tax deficiency will be abated as is necessary to result in an assessment of $$$$$ in tax for the period in issue.

2. XXXXX Utah franchise tax liability for the years in issue shall be fully and completely settled by the payment of corporate franchise tax in the amount of $$$$$ together with interest through XXXXX of $$$$$.

3. XXXXX shall be precluded from filing any further appeals with regard to the franchise tax for the years pending in this matter.

4. XXXXX's payment of $$$$$ is payment in full for the Notice. The Auditing Division shall not further audit XXXXX's books and records for the tax years ending XXXXX and XXXXX, or assess any additional franchise tax liability against XXXXX for such years.

5. If Utah franchise tax liability for either year is increased or decreased as a result of a federal tax audit ("RAR"), a deficiency may be asserted by the Auditing Division or a refund may be claimed by XXXXX solely on the issues raised by the RAR. Any Utah income or loss resulting from federal audit adjustments would be calculated using the method of filing originally used by XXXXX (i.e., worldwide combination would not be used).

6. The Commission recognizes that acceptance of this Stipulation and Settlement and agreement not to appeal this Order is solely for the purpose of avoiding protracted litigation and associated costs and delays and does not constitute an admission by either party as to the unitary or non-unitary nature of XXXXX itself or XXXXX and any of its subsidiaries, the proper method of allocating or apportioning income of XXXXX and any of its subsidiaries, or the proper treatment of any item contained in the Notice of Deficiency or the Petition.

DATED this 3 day of October, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.