BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX )
:
Petitioner, ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW
v. ) AND FINAL DECISION
:
) Appeal No.
89-0189
COLLECTION
DIVISION OF THE :
UTAH STATE TAX
COMMISSION )
: Account
No. XXXXX
Respondent. )
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission pursuant to the Utah
Administrative Procedures Act for a formal hearing on XXXXX, before Joseph G.
Linford, Presiding Officer. The
Petitioner was represented by XXXXX. No
one representing Respondent appeared at the hearing.
After
reviewing the evidence and arguments of the parties in the record and the
recommendation of the presiding officer, the Tax Commission hereby makes its:
FINDINGS OF FACT
l. The tax in question is mineral production
withholding tax.
2. The period in question is July XXXXX to
December XXXXX.
3. The law which imposes this tax, Utah Code
Ann. §§59-6-101 to 59-6-103, was enacted as HB 92 in the 1982 budget session of
the Utah State Legislature and was to take effect on July 1, 1982.
4. Petitioner received information from the Tax
Commission which Petitioner construed as stating that the tax in question did
not apply to payments to working interest owners. Based upon this, Petitioner did not withhold the tax from the
working interest owners for part of the period in question.
5. In XXXXX, Petitioner was again contacted by
the Tax Commission, and upon information gained, Petitioner began withholding
from its working interest owners. Since
that time Petitioner has complied with all the withholding requirements under
the law.
6. Penalties and interest were assessed for the
amounts not withheld during the period in question.
7. By letter dated XXXXX, the Tax Commission
waived all of the penalty amount of $$$$$.
The Tax Commission did not waive the interest amount at that time
equaling $$$$$.
8. Petitioner now requests that the interest
assessment be waived as well.
CONCLUSIONS OF LAW
1. Utah Code Ann. §§59-1-401 and 59-1-402
provide that penalties and interest shall be imposed for the late payment and
filing of taxes.
2. Utah Code Ann. §59-1-401(8) provides that
upon reasonable cause shown, the Tax Commission may waive or reduce penalties
and interest imposed under the above statutes.
3. Such reasonable cause has been shown for the
waiver of interest in this case.
Petitioner may have been confused because of the information provided by
the Tax Commission. Consistent with
earlier decisions regarding this issue (see Utex Oil Company v. Auditing
Division of the State Tax Commission of Utah, Tax Appeal No. 86-0232 (Utah
State Tax Commission, 1987) and Wildrose Resources Corp. v. Auditing Division
of the Utah State Tax Commission, Tax Appeal No. 88-0694 (Utah State Tax
Commission, 1990)), the interest as well as the penalty should be waived.
DECISION AND ORDER
Based
upon the foregoing, it is the decision and order of the Utah State Tax
Commission that Petitioner's request for waiver of interest be granted, the
waiver of penalty being previously granted.
DATED
this 17th 4th day of May, 1990.
BY ORDER OF THE UTAH STATE TAX COMMISSION.
ABSENT
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe
B.Pacheco G.
Blaine Davis
Commissioner Commissioner