89‑0386
Sales
Singed 9/1/89
BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
:
Petitioner ) FINDINGS OF
FACT,
: CONCLUSIONS OF LAW, and
v. ) FINAL DECISION
:
) Appeal No. 89‑0386
COLLECTION
DIVISION OF THE :
STATE TAX
COMMISSION OF UTAH )
: Acct No. XXXXX
Respondent )
_____________________________________
STATEMENT OF CASE
This matter came before the Utah State
Tax Commission pursuant to Utah Rules of Administrative Procedure and the
Administrative Procedures Act for formal adjudicative proceedings on XXXXX 2:00
p.m. Joseph G. Linford, Presiding Officer, was the Hearing Officer at the
hearing. The Petitioner was represented
by XXXXX. XXXXX of the Collections
Division of the Utah State Tax Commission represented the Respondent.
Based upon the recommendation of the
Presiding Officer and upon the facts and evidence in the file and presented at
the hearing, the Tax Commission hereby makes its:
FINDINGS OF FACT
1.
The tax in question is sales tax.
2.
The period in question is XXXXX.
3.
During the years in question, the Petitioner incurred substantial
business losses. As a result of those
losses, Petitioner retained sales tax which it had collected and which it owed
to the state.
4.
While no dishonesty was intended on the part of the Petitioner, their
intent being simply to keep their business operating, yet the Petitioner did
retain taxes which were due and payable to the state over that period of
time. The Petitioner knew that the tax
was owing and yet it knowingly retained that tax and did not pay it to the
state.
5.
Petitioner requests a waiver of penalty and interest assessed on the tax
in question.
CONCLUSIONS OF
LAW
1.
Utah Code Ann. ' 59‑1‑401,
59‑1‑402, 59‑12‑107(19) and 59‑12‑111 (1987
Replacement, 1989 Supp.) provide that penalties and interest shall be assessed
on the late payment of sales taxes and on the late filing of tax returns.
2.
Utah Code Ann. 59‑1‑401(8) (1987 Replacement, 1989 Supp.)
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 not been shown by Petitioner. While it is apparent that Petitioner did not
intend any dishonesty in retaining the taxes owed, it is apparent that Petitioner
did know that those taxes were due and owing.
In disregard of that knowledge Petitioner knowingly failed to remit what
was owed. Petitioner's honest intent,
while laudable, is not sufficient reasonable cause under the circumstances of
this case to waive the penalties and interest assessed on the tax in question.
DECISION AND
ORDER
Though Petitioner's intent may have
been honest in its own mind, yet it is apparent it also intended to keep from
the state, albeit temporarily, taxes which were due and owing. It is therefore the decision of the Utah
State Tax Commission that the Petitioner's request for waiver of penalty and
interest is hereby denied. It is so
ordered.
DATED this 1st day of September, 1989.
BY ORDER OF THE
UTAH STATE TAX COMMISSION.
R. H. Hansen Roger O. Tew
Chairman Commissioner
ABSENT
Joe B. Pacheco G. Blaine Davis
Commissioner Commissioner
NOTICE: You
have ten (10) days after the date of the final order to file a request for
reconsideration or thirty (30) days after the date of final order to file in
Supreme Court a petition for judicial
review. Utah Code Ann. '' 63‑46b‑13(1),
46b‑14(2)(a).
^^