Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2018

Sales and Use Tax Annotations

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535.0000 SUCCESSOR'S LIABILITY—Regulation 1702

Annotation 535.0095

535.0095 Transfer without Consideration. Entity A ceased operation of its business. In the same month, B, a former employee of A, secured a seller's permit and commenced the operation of a similar business at the same location under a different name. B dealt with some of the same suppliers as A and retained A's telephone number. The business sign continued to show A's business name. There was no evidence of any payment from B to A for the business, or that B assumed any debts of A's business.

Where a tax debtor transfers the business or stock of goods without assumption of liabilities or other consideration from the transferee, the transferee does not become liable as a successor for the tax debt of the transferor. There is no purchase price from which the transferee can withhold amounts for payment of tax. 7/15/94.