Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2014
 

Sales and Use Tax Annotations


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S

495.0000 SALE

Annotation 495.0737

(d) TRANSFERS BETWEEN RELATED LEGAL ENTITIES

495.0737 Transfer from Receiver to Bankruptcy Estate. A receiver was appointed to operate a business when there was a dispute between the owners. The receiver did not pay the full amount of tax due to the Board and ultimately filed for bankruptcy. The owners also filed for bankruptcy and the business assets were transferred to the bankruptcy estate. Pursuant to a plan of reorganization, one of the owners took over operation of the business. The court determined that this owner is not liable for tax liability incurred during the period the receiver operated the business. There is no sale since the bankruptcy estate obtained the same assets that it would have received directly from the debtor had there been no receiver. A claim may properly be made against the receiver's bond for the amount due from the receiver. 3/29/95.