Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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C

170.0000 COLLECTION OF TAX BY BOARD

Annotation 170.0006.250

(a) IN GENERAL

170.0006.250 Court Order for Restitution for Corporate Tax Liability. A corporation's tax liability is not affected by the prosecution of its officers or shareholders for criminal violation of the Revenue and Taxation Code. The Board may continue the administrative review of the determinations issued against a corporation while criminal proceedings are pending against the corporation or its officers or shareholders. If any tax liability is final, the Board may collect that liability while criminal charges are proceeding against a corporation or its officers or shareholders.

If a corporation or its officers or shareholders have been convicted of a criminal offense and have been ordered to pay restitution, the restitution order is a court order directed to the convicted person or entity requiring the payment of restitution as a condition of probation in the criminal case. The restitution order has no effect on the liability imposed pursuant to the civil tax provisions of the Revenue and Taxation Code. The Board may continue to collect the full amount of the tax liability imposed on the taxpayer.

In a situation where a corporate officer or shareholder was ordered to pay a portion of the corporate liability, any payment received from the corporate officer or shareholder pursuant to the restitution order should be applied to the corporate tax liability for that period. The Board may continue any collection action against the corporation during the period that the corporate officer or shareholder is ordered to make the restitution payments. If the corporate officer or shareholder fails to make the restitution payments ordered, the sole remedy against the corporate officer or shareholder is through the criminal court system since under these facts the corporate officer or shareholder had not incurred personal civil tax liability under the Revenue and Taxation Code or the Board's interpretation thereof. 10/31/96.