BEFORE THE UTAH STATE TAX
COMMISSION
_________________________________
In Re: ) FINDINGS OF FACT,
: CONCLUSIONS
OF LAW,
XXXXX ) AND FINAL DECISION
: Appeal No.
91-0084
: Account
No. XXXXX
___________________________
STATEMENT OF CASE
This
matter came before the Utah State Tax Commission on XXXXX. Alan Hennebold, Presiding Officer, heard the
matter for and on behalf of the Commission.
The Petitioner waived its right to a hearing and asked that a decision
be made on the basis of the documentary record.
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 XXXXX.
3. At all times material to this case,
Petitioner was a XXXXX corporation, with headquarters in XXXXX, but also
operating a terminal in Utah. During XXXXX,
Petitioner purchased three vehicles in Utah from XXXXX. One of Petitioner's agents signed a
nonresident affidavit stating that the Petitioner did not do business in Utah
and that the trucks would not be used in Utah.
Based upon the representations of the Petitioner's agent as set forth on
the nonresident affidavit, no sales tax was collected on the transaction.
An
audit by the staff of the Utah State Tax Commission resulted in imposition of
sales tax liability of $$$$$ against the Petitioner, together with a 15%
penalty of $$$$$ and interest of $$$$$, for a total liability of $$$$$.
Immediately
upon being advised of the audit results, the Petitioner paid the amount of the
tax liability and filed a request for waiver of penalty and interest. Because the waiver request was pending, the
Petitioner did not submit payment of the assessed penalty and interest by the
due date established in the audit. As a
result, an additional late payment penalty of $XXXXX has been assessed against
the Petitioner.
The
Petitioner contends its agent relied upon XXXXX for guidance in the transaction
in question and would not have purchased the vehicles had it known the
transaction was subject to sales tax in Utah.
CONCLUSIONS OF LAW
Utah
law imposes a 15% penalty for underpayment of tax due to intentional disregard
of law or rule. Utah law also imposes a
penalty of either $50 of 10% of the tax, whichever is larger, for late payment
of tax. (Utah Code Ann. §59-1-401.)
The
Tax Commission is granted the authority to waive, reduce, or compromise
penalties and interest upon a showing of reasonable cause. (Utah Code Ann. §59-1-401(8).)
DECISION AND ORDER
The
Petitioner admits that its agent signed a nonresident affidavit which contained
incorrect information regarding the Petitioner's activities and status in
Utah. It is the Petitioner's
responsibility to accurately complete such nonresident affidavits.
Based
upon the foregoing, the Tax Commission finds that sufficient cause has not been
shown which would justify waiver of the initial penalty of $$$$$ assessed
against Petitioner. However, reasonable
cause does exist to waive the late payment penalty of $$$$$. Interest is not waived, but will be
recomputed in accordance with this decision.
It is so ordered.
DATED
this 12th day of June, 1991. BY ORDER OF THE UTAH STATE TAX
COMMISSION.
R. H. Hansen Roger
O. Tew
Chairman Commissioner
Joe B.
Pacheco G.
Blaine Davis
Commissioner Commissioner