88-2844 - Corporation Franchise

 

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

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