89-1247 - Cigarette Stamp

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

XXXXX

: FINDINGS OF FACT,

Petitioner : CONCLUSIONS OF LAW, AND

: FINAL DECISION

v. :

: Appeal No. 89-1247

COLLECTION DIVISION OF THE :

STATE TAX COMMISSION OF UTAH, :

:

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 Tax Commission. Present and representing the Petitioner, were XXXXX and XXXXX.

Based upon the evidence and arguments presented at the hearing, the Tax Commission hereby makes its:

FINDINGS OF FACT

1. The tax in question is cigarette stamps.

2. The date in question is XXXXX.

3. On XXXXX a cigarette stamp inspection conducted on the Petitioner's store located in XXXXX revealed XXXXX packages of cigarettes of various brands failed to have the appropriate Utah cigarette tax stamps affixed to them.

4. On XXXXX a cigarette stamp inspection was conducted on petitioner's store located in XXXXX. It was revealed that XXXXX packages of cigarettes failed to have the appropriate Utah cigarette tax stamps affixed to them. The cigarettes had XXXXX stamps affixed to them.

5. On XXXXX, a cigarette stamp inspection conducted on the Petitioner's store located in XXXXX revealed XXXXX packages of cigarettes without the appropriate Utah cigarette stamps affixed to them.

6. On XXXXX, a cigarette tax stamp inspection conducted on the Petitioner's store located in XXXXX revealed XXXXX packages of cigarettes without the appropriate Utah cigarette tax stamps affixed to them.

7. On XXXXX, a cigarette stamp inspection conducted on Petitioner's store located at XXXXX revealed XXXXX packages of cigarettes without the appropriate Utah cigarette tax stamps affixed to them. The cigarette packages had XXXXX stamps affixed to them.

8. The Petitioner's representative testified as to the elaborate procedures utilized by the Petitioner to ensure that the appropriate stamps are affixed to all packages of cigarettes and to ensure no cigarette packages leave the warehouse without first having the appropriate stamps affixed to them. The representative was not sure as to how the cigarettes in question were released from the warehouse without having the appropriate stamps affixed to them.

9. The Petitioner was assessed a penalty in the amount of $$$$$ for not having the appropriate Utah cigarette stamps affixed to the above described cigarettes.

CONCLUSIONS OF LAW

The Tax Commission is granted the authority to waive, reduce, or compromise penalties and interest upon a showing of reasonable cause and upon making a record of its decision. (Utah Code Ann. §59-1-401-8)

DECISION AND ORDER

Based upon the foregoing, the Tax Commission finds sufficient cause has not been established to waive the penalty associated with the cigarette packages which did not bear the appropriate Utah state cigarette tax stamps. Therefore, the Petitioner's request to waive the penalty in question is denied.

DATED this 1st day of December, 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