90-0139 - Sales

 

BEFORE THE UTAH STATE TAX COMMISSION

_____________________________________

COLLECION OF THE )

UTAH STATE TAX COMMISSION, :

Petitioner, : FINDINGS OF FACT,

: CONCLUSIONS OF LAW

v. : FINAL DECISION

: AND ORDER OF REVOCATION

: Appeal No. 90-0139

XXXXX ) Account No. XXXXX

Respondent. :

________________________________

STATEMENT OF CASE

This matter came before the Utah State Tax Commission for a formal hearing on XXXXX. Joseph G. Linford, Presiding Officer, heard the matter for and on behalf of the Commission. Present and representing the Petitioner was XXXXX. Present and representing the Respondent was XXXXX.

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

FINDINGS OF FACT

1. The tax in question is sales and use tax.

2. The periods in question are the fourth quarter of XXXXX, and the first, third, and fourth quarters of XXXXX.

3. The Respondent was issued sales tax license number XXXXX. The Respondent, as of XXXXX, was in arrears in sales tax collection and remittance to the Utah State Tax Commission in the sum of $$$$$. XXXXX testified that after the death of Respondent's owner, XXXXX, there were not enough assets left by XXXXX to meet the financial obligations outstanding, including the sales tax amounts owed. XXXXX also testified that there were some buyers interested in purchasing the Respondent's business, and if such purchases were successful, the back taxes might be able to be paid. It was, therefore, agreed between the Petitioner and Respondent that a thirty day stay of the revocation of Respondent's sales tax license should be granted in order to give Respondent time to sell its business and, therefore, have the money to pay the tax due amount. Such a stay was granted.

4. After the thirty day period had expired, XXXXX, in contact with the hearing officer, represented that an initial potential purchase of the business had not been realized but there were others pending. XXXXX asked the hearing officer to wait for another period of two or three weeks.

5. Subsequent communications among XXXXX, the Respondent, and the hearing officer finally culminated on XXXXX, when XXXXX stated to the hearing officer that XXXXX was going to take over the property of Respondent, but that XXXXX has its own sales tax number and would not be purchasing the actual XXXXX XXXXX, but would only be moving onto the property. XXXXX represented that for all intents and purposes, the Respondent is now, and has been since before the revocation proceeding out of business. XXXXX is not assuming any of Respondent's debts, liabilities, or assets. XXXXX then recommended that the revocation of sales tax license number XXXXX would be appropriate.

CONCLUSIONS OF LAW

The Tax Commission has the authority under Utah Code Ann. §59-12-106(1) to revoke the sales tax license of any person or entity failing to comply with the laws of the state of Utah relative to the collection and payment of sales tax. The above facts indicate that Respondent has failed to so comply and has virtually no prospect in the future of complying.

DECISION AND ORDER

Based upon the foregoing, it is the decision and order of the Utah State Tax Commission that sufficient cause for the revocation of license number XXXXX has been shown for failure to comply with laws of the state of Utah. Therefore, license number XXXXX is revoked and Respondent is ordered to surrender the license to the Tax Commission within three days from the

date of this order.

DATED this 19 day of July, 1990.

BY ORDER OF THE UTAH STATE TAX COMMISSION.

R. H. Hansen Roger O. Tew

Chairman Commissioner

Joe B. Pacheco G. Blaine Davis

Commissioner Commissioner