Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2016
Sales and Use Tax Annotations
170.0000 COLLECTION OF TAX BY BOARD
(a) IN GENERAL
170.0012 Nominee Lien. A taxpayer obtained a seller's permit in 1989 to operate a retail business. The taxpayer failed to file a return and pay tax for the fourth quarter of 1993. In an audit of the taxpayer's business dated December 22, 1994, the Board estimated the tax owing for the fourth quarter 1993.
On March 18, 1994, the taxpayer recorded a grant deed transferring real property owned by him in California to his brother. The deed indicated that no documentary transfer tax was paid citing, "inter-family transfer, no consideration."
The Board issued a Notice of Determination to the taxpayer on January 27, 1995, based on audit results.
In this situation, the taxpayer transferred the property to his brother for no consideration with actual intent to hinder or defraud the Board within the meaning of Civil Code section 3439.04. Thus, a nominee lien should be issued against the property. 7/20/95.