Bill Text: CA AB347 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Income and corporation taxes: charitable contributions:

Spectrum: Slight Partisan Bill (Democrat 55-27)

Status: (Passed) 2010-03-15 - Chaptered by Secretary of State - Chapter 8, Statutes of 2010. [AB347 Detail]

Download: California-2009-AB347-Amended.html

---

BILL NUMBER: AB 347	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 21, 2009

INTRODUCED BY   Assembly Member Block

                        FEBRUARY 19, 2009

   An act to amend Section 7054 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 347, as amended, Block. Sales and use taxes: failure to furnish
information.
   The Sales and Use Tax Law imposes a tax on retailers measured by
the gross receipts from the sale of tangible personal property sold
at retail in this state, and on the storage, use, or other
consumption in this state of tangible personal property purchased
from a retailer for storage, use, or other consumption in this state.
The State Board of Equalization is authorized to administer and
enforce that law  , as provided  . Existing law
provides that the board or any authorized person may examine the
books, papers, records, and equipment of any person selling tangible
personal property and any person liable for the use tax and may
investigate the character of the business of the person in order to
verify the accuracy of any return made, or, if no return is made by
the person, to ascertain and determine the amount required to be
paid.
   This bill would authorize the board to impose a 25% penalty, as
specified, if during an examination or audit engagement,  the
  a  person fails or refuses to furnish any 
relevant and reasonable  information requested by  the
  a specified  date  specified in writing
and required by the Sales and Use Tax Law   as provided
 .  This bill would also clarify that records include
electronic data. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 7054 of the Revenue and Taxation Code is
amended to read:
   7054.  (a) The board or any person authorized in writing by it may
examine the books, papers, records,  including without
limitation, electronic data,  and equipment of any person
selling tangible personal property and any person liable for the use
tax and may investigate the character of the business of the person
in order to verify the accuracy of any return made, or, if no return
is made by the person, to ascertain and determine the amount required
to be paid.
   (b) If, during an examination or audit engagement, any person
described in subdivision (a) fails or refuses to furnish any 
relevant and reasonable  information requested  by the
date specified in writing by the board and required by this part upon
notice and demand by the board,   by the conclusion of
the information request period,  then, unless the failure is due
to reasonable cause and not willful neglect, the board may add a
penalty of 25 percent of the amount of  tax determined
pursuant to Section 6481 or  any deficiency of tax
determined by the board concerning the  assessment 
 that portion of the determination  for which the
information was required. 
   (c) For purposes of this section, "the conclusion of the
information request period" occurs after the board or any person
authorized has done all of the following:  
   (1) Made a verbal request for relevant and reasonable information
from the person related to the area or areas under an examination or
audit engagement including alternative sources of information in
order to substantiate the facts and circumstances of the area under
examination or audit.  
   (2) Subsequent to a person's failure or refusal to furnish the
information so requested in paragraph (1), but no earlier than 30
days from the date of that verbal request, made an initial written
request for that information that specifies the date on which the
information is required to be furnished, but in no event shall the
written request specify a date to furnish the information earlier
than 30 days from the date of that initial written request. 

   (3) Subsequent to a person's continued failure or refusal to
respond to the requests specified in paragraphs (1) and (2), made a
follow-up written request for that information that specifies the
date on which the information is required to be furnished, but in no
event shall the follow-up written request specify a date to furnish
the information earlier than 15 days from the date of that follow-up
written request.  
   (4) Subsequent to a person's failure or refusal to respond to the
requests specified in paragraphs (1), (2), and (3), issued a formal
notice and demand to furnish the information that specifies the date
on which the information is required to be furnished, but in no event
shall the notice and demand specify a date to furnish the
information earlier than 15 days from the date of that notice and
demand.  
   (5) Subsequent to a person's failure or refusal to respond to the
formal notice and demand specified in paragraph (4) within the date
specified, issued a subpoena pursuant to Section 15613 of the
Government Code for the information described in paragraph (1). 

   (d) For purposes of paragraph (1) of subdivision (c), the board or
any person authorized has fulfilled the requirements of making a
verbal request for the information when the board or the person
authorized has made good faith effort to contact the person to obtain
that information, whether telephonically or otherwise, using the
last known contact information of that person as identified in the
board's records.