BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX
:
Petitioner :
: FINDINGS
OF FACT,
v. : CONCLUSIONS OF LAW
: AND FINAL
DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 89-0632
STATE TAX
COMMISSION OF UTAH )
: Account
No. XXXXX
Respondent :
_____________________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission for a formal hearing on
XXXXX. Paul F. Iwasaki, Presiding
Officer, heard the matter for and in behalf of the Commission. Present and representing the Petitioner was
XXXXX.
Based
upon the testimony and evidence presented at the hearing, the Tax Commission
hereby makes its:
FINDINGS OF FACT
1. The tax in question is occupation tax.
2. The period in question is XXXXX.
3. The Petitioner started business in
XXXXX. At that time it acquired assets
and property of XXXXX through a bankruptcy proceeding.
4. Because of the bankruptcy proceeding, the
records of XXXXX with respect to two of the fields in question, XXXXX and
unnamed XXXXX, were not received by the Petitioner until XXXXX.
5. When the Petitioner filed and paid the
occupation tax on the above mentioned wells, it had taken a 6-month production
exemption pursuant to Utah Code Ann. §59-5-102(2)c. Petitioner did so believing in good faith that the two wells had
been drilled after XXXXX.
6. The two wells in question had been drilled
prior to XXXXX, however, because of the unavailability of the records from
XXXXX, the Petitioners were not aware of that fact.
7. As a result of an audit, it was discovered
that taxes in the amount of $$$$$ should have been paid because the exemption
did not apply. That amount plus
interest in the amount of $$$$$ was paid by Petitioner on XXXXX.
8. As a result of the late payment of the tax,
the Petitioner was assessed a penalty in the amount of $$$$$.
CONCLUSIONS OF LAW
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8)).
DECISION AND ORDER
In
the present case, the Tax Commission finds that sufficient cause exists to
reduce the penalty associated with the occupation tax for XXXXX to an amount of
$$$$$. It is so ordered.
DATED
this 14th day of March, 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