BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX, : STIPULATION AND ORDER
Petitioner, :
v. : Appeal No. 88-2844
AUDITING
DIVISION, UTAH STATE :
TAX COMMISSION, :
Respondent, :
_____________________________________
STIPULATION
XXXXX
and its subsidiaries (hereafter "XXXXX") and the Auditing Division of
the Utah State Tax Commission (hereafter "Auditing Division")
stipulate as follows:
1.
Following a Multistate Tax Commission (hereafter "MTC") audit of
XXXXX for calendar years XXXXX through XXXXX, the Auditing Division issued a
Statutory Notice of Deficiency for additional corporate franchise tax.
2.
The Auditing Division has also reviewed XXXXX's Utah corporate franchise tax
return for calendar year XXXXX. XXXXX
and the Auditing Division agree that it would be beneficial to resolve XXXXX's tax
liability for XXXXX while settling the MTC audit, since many of the issues in
the MTC audit are unique to worldwide reporting requirements which were in
effect through XXXXX.
3.
XXXXX agrees to pay the amount of $$$$$ in settlement of the corporate franchise
tax liabilities of XXXXX for calendar years XXXXX through XXXXX within 30 days
after this stipulation is approved by the Commission. If payment is made after XXXXX, XXXXX agrees to pay additional
interest at the rate of $$$$$ per day from that date until the payment is made.
4.
If Utah corporate franchise tax liability for calendar year XXXXX, XXXXX,
XXXXX, or XXXXX is increased or decreased as a result of a revenue agent's
report (hereafter "RAR") based on a federal tax audit, a deficiency
may be asserted by the Auditing Division or a refund may be claimed by XXXXX
solely on the issues raised by the RAR.
Any Utah income or loss resulting from the RAR shall be calculated using
the apportionment fractions used in the MTC audit for calendar years XXXXX
through XXXXX, and using the apportionment fraction as shown on XXXXX's
combined Utah return for XXXXX.
5.
Except as provided in paragraph 4, no additional deficiencies may be asserted
by the Auditing Division and no additional refunds may be claimed by XXXXX, for
calendar years XXXXX through XXXXX.
6.
The settlement of this matter shall not have any retroactive or prospective
application to periods other than XXXXX through XXXXX.
7.
The Auditing Division recommends that the Commission accept the terms of this
stipulation in settlement of this matter.
8.
This stipulation is subject to approval by the Commission. In the event the Commission fails to approve
the stipulation, it shall be without effect and shall not be admissible as
evidence against XXXXX or the Auditing Division.
DATED: XXXXX
XXXXX
DATED: XXXXX
XXXXX
Assistant Attorney
General
Attorney for Auditing
Division
ORDER
The
Tax Commission hereby approves the settlement terms contained in the foregoing
Stipulation. The Auditing Division's
claim regarding the corporate franchise tax deficiencies of XXXXX for calendar
years XXXXX through XXXXX shall be satisfied by the receipt of $$$$$ ($$$$$),
plus interest as provided in the Stipulation.
DATED
this 25 day of November, 1991.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
R. H. Hansen JOE
B. PACHECO
Chairman Commissioner
Roger O. Tew S.
BLAINE WILLES
Commissioner Commissioner
^^