Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Annotations > S > 535.0000 Successor's Liability > Annotation 535.0093

Sales and Use Tax Annotations

A    B    C    D    E    F    G    H    I    J    L    M    N    O    P    R    S    T    U    V    W    X   

---

S

---

535.0000 Successor's Liability—Regulation 1702

Annotation 535.0093

---

535.0093 Transfer to Avoid Tax Liability. A taxpayer was issued a notice of determination on March 11, 1982. On February 22, 1983, he executed a declaration of a gift of all of the equipment of the business to his wife. On December 31, 1983, he closed out his seller's permit. On December 28, 1983, his wife took out a seller's permit for the business in a corporate name effective January 1, 1984. A notice of successor's liability was issued against the corporation. The corporation has objected to the successor's billing on the basis that there was no consideration.

Successor liability is asserted under these circumstances. The sole purpose for the transfer of the property was an attempt to avoid sales tax liability. To cancel the successor liability would defeat the general purpose of the law and permit the perpetration of fraud. 11/6/84.