Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2012
Sales And Use Tax Court Decisions
Century Geophysical Corp. v. California Board of Equalization . . . (1977)
The Board of Equalization filed a claim in bankruptcy against a parent corporation, under Revenue and Taxation Code section 6812 (successor liability), for tax allegedly due from parent's wholly owned subsidiary. The bankruptcy referee disallowed the claim in its entirety on the ground that it described a debt which was not a debt of the bankrupt parent corporation. The Board failed to appeal the order disallowing its claim.
Since the Board failed to appeal the order below, the matter was considered by the Court of Appeals as one where the seller had no tax liability. (If the Board had wished to contest that finding, it should have appealed it.) Accordingly, since the seller had no tax liability, the purchaser could not have liability under the successor liability provisions which apply only when the seller does have a tax liability. Century Geophysical Corp. v. California Board of Equalization (9th Cir. 1977) 564 F.2d 342.