1 BEFORE THE CALIFORNIA STATE BOARD OF EQUALIZATION 2 450 N STREET 3 SACRAMENTO, CALIFORNIA 4 5 6 7 8 REPORTER'S TRANSCRIPT 9 JULY 27, 2011 10 11 12 13 14 15 16 FINAL ACTIONS 17 18 19 20 21 22 23 24 REPORTED BY: JULI PRICE JACKSON 25 CSR NO. 5214 26 27 28 1 1 2 P R E S E N T 3 4 For The Board Jerome E. Horton of Equalization: Chairman 5 Michelle Steel 6 Vice-Chairwoman 7 Betty T. Yee Member 8 George Runner 9 Member 10 Marcy Jo Mandel Appearing for John Chiang 11 State Controller (per Government Code 12 Section 7.9) 13 Diane G. Olson Chief, Board 14 Proceedings Division 15 16 For staff: David Levine Legal Department 17 18 19 ---OOO--- 20 21 22 23 24 25 26 27 28 2 1 450 N STREET 2 SACRAMENTO, CALIFORNIA 3 JULY 27, 2011 4 ---o0o--- 5 MS. OLSON: Our next item are those matters 6 that have been taken under submission. 7 Our first item is C4, Dansig, Incorporated. 8 ---o0o--- 9 C4 DANSIG, INC. 10 NO. 493691 (EA) 11 ---o0o--- 12 MR. HORTON: Discussion, Members? 13 MR. RUNNER: Hang on, just a minute, let me -- 14 MR. HORTON: Okay. 15 MR. RUNNER: The conversation -- I guess part 16 of this discussion we had with it -- I am sorry, I'm 17 here now. 18 MR. HORTON: Okay. Members? 19 Okay, Mr. Runner? 20 MR. RUNNER: Okay. Yeah, the conversation 21 that -- at least we had in regards to trying to find out 22 when the contract was known and some of the other detail 23 there and in conversation, at least, that -- my 24 understanding has been had with the taxpayer that -- 25 that, indeed, with the 30-30-30 that could be some 26 additional information that could be found and be 27 helpful, so I'd recommend a 30-30-30. 28 MR. LEVINE: If we went that route, I'd ask for 3 1 just a little time at the beginning because I want -- 2 ideally what would be good is for the Department to 3 submit some questions and then for me to add some on 4 top, as I'll probably will have some, and then start the 5 clock because then we'd want to give the -- 6 MR. RUNNER: Is that a 60-30-30? 7 MR. LEVINE: Or 30-30-30-30 -- just so we can 8 develop some questions, you know, survey-type things, 9 and -- 10 MR. HORTON: We delay the starting date for 30 11 days? 12 MR. LEVINE: Okay. 13 MR. HORTON: I mean, if that would be -- 14 MR. LEVINE: Yeah. 15 MR. HORTON: -- the will of the body? 16 MS. MANDEL: All right, I'll second it. 17 MR. HORTON: Okay. There's a motion and a 18 second. 19 And, so, it's -- it's your belief, Mr. Runner, 20 that this is the desire of the taxpayer? 21 MR. RUNNER: It's my understanding. 22 MR. HORTON: Okay. Well, far be it from me 23 to -- so moved. 24 Any objection, Members? 25 Hearing none, such will be the order. 26 ---o0o--- 27 28 4 1 MR. HORTON: Ms. Olson? 2 MS. OLSON: Our next item is 6a, Jamshid 3 Daryanabard and 6b -- I'm sorry -- Jamshid Daryanabard 4 and Tofan Daryanabard. 5 ---o0o--- 6 C6a JAMSHID DARYANABARD 7 NO. 467994 (SH) 8 C6b JAMSHID DARYANABARD AND TOFAN DARYANABARD 9 NO. 485017, 556731 (GH) 10 ---o0o--- 11 MR. HORTON: Discussion, Members? 12 Hearing none, is there a motion? 13 MS. YEE: Let me try one. 14 Move to adopt the staff recommendation to 15 redetermine. 16 And I'd like to propose that we reduce the 17 fraud penalty for the partnership to a negligence 18 penalty. 19 MR. HORTON: Including the adjustment to 20 the finality? 21 MS. YEE: Uh-huh. 22 MR. HORTON: Okay, is there a second? 23 MR. RUNNER: I'd second. 24 MR. HORTON: Second by Mr. Runner. 25 Objection, Members? 26 Hearing none, such will be the order. 27 ---o0o--- 28 5 1 REPORTER'S CERTIFICATE 2 3 State of California ) 4 ) ss 5 County of Sacramento ) 6 7 I, JULI PRICE JACKSON, Hearing Reporter for the 8 California State Board of Equalization certify that on 9 JULY 27, 2011 I recorded verbatim, in shorthand, to the 10 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 5 constitute a complete and accurate 14 transcription of the shorthand writing. 15 16 Dated: AUGUST 2, 2011 17 18 19 ____________________________ 20 JULI PRICE JACKSON 21 Hearing Reporter 22 23 24 25 26 27 28 6