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Business Taxes Law Guide – Revision 2022
 

Sales And Use Tax Law

Revenue and Taxation Code

Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 5. Determinations

Article 2. Deficiency Determinations

Section 6485


6485. 25 percent penalty. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or authorized rules and regulations, a penalty of 25 percent of the amount of the determination shall be added thereto.

Standard of proof for civil fraud is clear and convincing evidence.—In a bankruptcy case, a federal appeals court predicted that the California Supreme Court would apply a standard of clear and convincing evidence, not merely a preponderance of evidence, to establish civil tax fraud. In re Renovizor's, Inc. (9th Cir. 2002) 282 F.3d 1233.