1 2 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 3 450 N STREET 4 SACRAMENTO, CALIFORNIA 5 6 7 8 9 REPORTER'S TRANSCRIPT 10 NOVEMBER 17, 2010 11 12 13 14 15 16 FINAL ACTIONS 17 18 19 20 21 22 23 24 25 REPORTED BY: CAROLE W. BROWNE 26 CSR NO. 7351 27 28 1 1 P R E S E N T 2 3 For The Board Betty T. Yee 4 Of Equalization Chair 5 Jerome E. Horton Vice-Chair 6 Barbara Alby 7 Acting Member 8 Michelle Steel Member 9 Marcy Jo Mandel 10 Appearing for John Chiang State Controller 11 (Per Government Code Section 7.9) 12 Diane G. Olson 13 Chief, Board Proceedings Division 14 15 ---o0o--- 16 17 18 19 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 NOVEMBER 17, 2010 4 ---o0o--- 5 MS. OLSON: That concludes our oral hearings for 6 this afternoon and we'll move on to those cases that have 7 been submitted for decision. 8 MS. YEE: Okay. Very well. All right. 9 Let's -- why don't we take up those cases then that we've 10 put under -- under submission. 11 MS. OLSON: Okay. Would you like to -- would 12 you like to take the H items first? 13 MS. YEE: Let's do the oral hearings first. 14 MS. OLSON: Okay. Our first oral hearing is C1, 15 John Douglas Bailey. 16 ---o0o--- 17 C1 - JOHN DOUGLAS BAILEY 18 NO. 382279 19 ---o0o--- 20 MS. YEE: Okay. Members, we're on Item C1, John 21 Douglas Bailey. 22 Is there a motion? 23 MR. HORTON: Just one second. I'm just catching 24 up. 25 MS. YEE: That's okay. Take your time. 26 MR. HORTON: Move to adopt staff recommendations. 27 MS. YEE: Okay. Motion by Mr. Horton to adopt 28 the staff recommendations. Is there a second? 3 1 MS. MANDEL: Second. 2 MS. YEE: Okay. Second by Ms. Mandel. 3 Discussion, please? 4 MS. STEEL: Can I ask Mr. Levin that the 5 taxpayer brought anything new about the amended return? 6 MR. LEVINE: I didn't hear anything new. Was 7 there something in particular you're thinking of? 8 MS. STEEL: Because taxpayer was mentioning 9 about the amended return part, so . . . 10 MR. LEVINE: I didn't hear anything new. This 11 is basically the -- the same case that Mrs. Kruss -- 12 Miss Kruss had in 2005 or 2006 where I think you pointed 13 out that she mentioned him specifically. She said there 14 are other people more responsible. So he seemed higher 15 up in the chain than she was. 16 MS. STEEL: How about that the officer -- 17 officer certificate dated on October 23rd of 2000? Can 18 we -- that petitioner did not willfully fail to pay taxes 19 because that officer certificate on October? 20 MR. LEVINE: That he resigned as of October? 21 The -- the period we have is 2000 -- the second quarter 22 2000 to the first quarter 2001. 23 MS. STEEL: Right. 24 MR. LEVINE: I don't think this is -- this isn't 25 like it's a cut-and-dried case, but I didn't hear 26 anything that was new from what we had looked at before. 27 MS. STEEL: Okay. Because it was really odd, 28 because Miss Kruss 2005 was blaming everything on 4 1 Mr. Bailey and then now today she came and she said even 2 his hands were tied, too, so I was really confused. 3 MR. LEVINE: I do recall when -- back in the 4 original hearing she was talking about people in 5 Canada -- 6 MS. STEEL: Right. 7 MR. LEVINE: -- so I don't remember -- I didn't 8 review the record, so I didn't remember who actually she 9 pointed out. 10 One thing that confused me is she has a final 11 liability, and I didn't compare whether she still has 12 this liability, but if so, I wouldn't try and get 13 Mr. Bailey off the hook, because -- 14 MS. STEEL: She paid most of it, though. She 15 paid, like -- 16 MR. LEVINE: She's paid -- she's paid a large 17 chunk. I don't know. 18 MS. STEEL: There's still small amount. 19 MR. LEVINE: I don't know if the amount that 20 we're billing to Mr. Bailey is -- was billed to her, too. 21 MS. STEEL: Okay. I'm done. Thank you. 22 MS. YEE: Thank you, Ms. Steel. 23 Okay. Other discussion? 24 Okay. Motion by Mr. Horton, second by 25 Ms. Mandel. 26 Objections? 27 Hearing none, such will be the order. 28 Okay. Next item. 5 1 ---o0o--- 2 C2 - MARK DIETER HANF 3 NO. 449688 4 ---o0o--- 5 MS. OLSON: Next item is C2, Mark Dieter Hanf. 6 Excuse me. Hanf. I can't say it. 7 MS. MANDEL: Hanf. 8 MS. OLSON: Hanf. 9 MS. YEE: Okay. 10 MS. OLSON: I apologize. 11 MS. YEE: Okay. 12 MR. HORTON: Move. 13 MS. YEE: Actually, let me -- let me ask my 14 colleagues. I apologize. I had to leave the dais to 15 take care of an urgent matter. Any objection to putting 16 this over for a vote until tomorrow? I'd like the 17 opportunity to review the -- 18 MR. HORTON: Sure. 19 MS. YEE: -- proceedings, okay, for the cases 20 for which I was out of the room. So we'll put C2 over 21 'til tomorrow. 22 MS. OLSON: Would you like C5 and then C4, also? 23 MS. YEE: C4. I -- C5 I was actually able to 24 monitor, so . . . 25 MS. OLSON: So then that would be C5, Lavjinder 26 Singh. 27 ---o0o--- 28 6 1 ---o0o--- 2 C5 - LAVJINDER SINGH 3 NO. 415065 4 ---o0o--- 5 MS. YEE: Okay. Item C5, Lavjinder Singh. May 6 I have a motion, please. 7 MR. HORTON: Move to adopt staff 8 recommendations. 9 MS. YEE: Okay. Motion by Mr. Horton to adopt 10 the staff recommendation. Is there a second? 11 MS. ALBY: Second. 12 MS. YEE: Second by Ms. Alby. Discussion? 13 MS. STEEL: Can we add to offer and compromise? 14 MS. YEE: Yes. I think that's . . . 15 MS. OLSON: I think Ms. Fong is in the audience. 16 She can help us. 17 MS. FONG: The offer and compromise program is 18 for taxpayers and fee payers who do not have the ability 19 to pay. There are two programs, one for the closeout 20 program, for businesses that are closed, no longer in 21 business, and one for open, active businesses. 22 The open, active business program, you have to 23 have a Board-assessed liability where tax reimbursement 24 was not at issue. 25 For C5 -- 26 MS. STEEL: But this one is already closed one; 27 right? 28 MS. FONG: For C5 -- 7 1 MS. STEEL: Right. C5. 2 MS. FONG: -- they do qualify for the program, 3 but the basis after they qualify is now their ability to 4 pay, their equity in -- in assets, future income 5 potential, and we would need the ability to evaluate 6 that. 7 MS. MANDEL: Well, we would be referring them. 8 MS. YEE: That's what we're referring to. We're 9 not sending them to make an offer. We're just -- 10 MS. FONG: Perfect. 11 MS. YEE: Okay. All right. We have a motion by 12 Mr. Horton, second by Ms. Alby to adopt the staff 13 recommendation then to direct staff to provide 14 information about the offer and compromise program to 15 petitioner. 16 Without objection? Motion carries. 17 ---o0o--- 18 19 20 21 22 23 24 25 26 27 28 8 1 MS. YEE: Okay. Our nonappearance. 2 MS. OLSON: Our next item was H1 3a, Woodland 3 Hills Carwash, Inc., and 3b, Bhupinder Singh Mac. 4 ---o0o--- 5 H1 3a - WOODLAND HILLS CAR WASH, INC. 6 NO. 299486 7 ---o0o--- 8 H1 3b - BHUPINDER SINGH MAC 9 NO. 299487 10 ---o0o--- 11 MS. YEE: Okay. So H1, subitems 3a and 3b, 12 that's Woodland Hills Carwash, Incorporated, and 13 Bhupinder Singh Mac. 14 May I have a motion, please? 15 MS. MANDEL: I move staff recommendation. 16 MS. YEE: Okay. 17 MS. ALBY: Could you hold a minute, please? 18 MS. YEE: Yes, I'm sorry. Item H1, subitems 3a 19 and b. 20 Okay. Motion by Ms. Mandel to adopt the staff 21 recommendation. Is there a second? 22 MR. HORTON: Second. 23 MS. YEE: Second by Mr. Horton. Discussion? 24 MS. STEEL: Just objection. 25 MS. YEE: Okay. All right. Please call the 26 roll. 27 MS. OLSON: Madam Chair. 28 MS. YEE: Aye. 9 1 MS. OLSON: Ms. Alby. 2 MS. ALBY: No. 3 MS. OLSON: Ms. Steel. 4 MS. STEEL: No. 5 MS. OLSON: Mr. Horton. 6 MR. HORTON: Aye. 7 MS. OLSON: Ms. Mandel. 8 MS. MANDEL: Aye. 9 MS. OLSON: Motion carries. 10 MS. YEE: Okay. 11 ---o0o--- 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 10 1 MS. OLSON: Then I believe our next item is H2.5. 2 ---o0o--- 3 H2.5 - BRUCE CULVER AND DONNA TURNER CULVER 4 NO. 480448 5 ---o0o--- 6 MS. YEE: H2.5. Okay. Item H2, subitem 5, 7 Bruce Culver and Donna Turner Culver. 8 Is there a motion, please? 9 MS. MANDEL: Move the staff recommendation. 10 MR. HORTON: Second. 11 MS. YEE: Motion by Ms. Mandel to adopt staff 12 recommendation, second by Mr. Horton. Discussion? 13 MS. STEEL: Just objection. 14 MS. YEE: Okay. Since this . . . 15 Okay. Questions? Discussions? 16 Please call the roll. 17 MS. OLSON: Madam Chair. 18 MS. YEE: Aye. 19 MS. OLSON: Ms. Alby. 20 MS. ALBY: No. 21 MS. OLSON: Ms. Steel. 22 MS. STEEL: No. 23 MS. OLSON: Mr. Horton. 24 MR. HORTON: Aye. 25 MS. OLSON: Ms. Mandel. 26 MS. MANDEL: Aye. 27 MS. OLSON: Motion carries. 28 MS. YEE: Okay. Next item. 11 1 MS. OLSON: And that concludes our agenda for 2 this afternoon. 3 MS. YEE: Okay. Thank you, members. We will 4 put over these other items 'til tomorrow for a vote, and 5 we are recessed until 9:30 tomorrow. Thank you. 6 ---o0o--- 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 12 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, CAROLE W. BROWNE, Hearing Reporter for the 8 California State Board of Equalization, certify that on 9 November 17, 2010, I recorded verbatim, in shorthand, to 10 the best of my ability, the proceedings in the 11 above-entitled hearing; that I transcribed the shorthand 12 writing into typewriting; and that the preceding pages 1 13 through 12 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: December 6, 2010 17 18 19 _________________________________ 20 CAROLE W. BROWNE 21 Hearing Reporter 22 23 24 25 26 27 28 13