BEFORE THE UTAH STATE TAX
COMMISSION
_____________________________________
XXXXX,
Petitioner, : FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
v. : AND FINAL DECISION
:
COLLECTION
DIVISION OF THE : Appeal No. 90-1503
UTAH STATE TAX COMMISSION, :
: 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 on behalf of the Commission. Present and representing the Petitioner 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 tax.
2. The period in question is the third quarter
XXXXX.
3. During the third quarter of XXXXX, the
Petitioner company was owned, in part, by an individual other than its current
owner.
4. The business arrangement under which the
Petitioner operates is that as a franchisee.
The Petitioner pays a business service fee to XXXXX, and XXXXX
responsibility is, among other things, to pay and file its tax returns.
5. XXXXX, in paying the tax liabilities of the
Petitioner, issues a check drawn on the Petitioner's account. XXXXX then notifies the Petitioner that a
check has been issued and drawn on the Petitioner's account.
6. On XXXXX, the parent corporation, XXXXX,
repurchased the stock in the Petitioner company because of business problems
encountered by the franchisee.
7. The sales tax return was filed and paid by
XXXXX by a check drawn on XXXXX of XXXXX account, however, the check was not
honored due to insufficient funds. The
sales tax liability for that period was $$$$$.
8. The current owner of the Petitioner company
assumed control on XXXXX. It was at
that time the current owner became aware of the outstanding tax liability.
9. A penalty in the amount of $$$$$ was
assessed for the late payment of the sales tax return in question.
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
Although,
in the present case, the current owner was not responsible for the late payment
of the return in question, the current owner is, nevertheless, liable as a
transferee for the liability of the tax and penalty imposed.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify a waiver of the penalty associated with the third
quarter XXXXX sales tax. It is so
ordered.
DATED
this 27 day of November, 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