Ruling May Overturn 30-Year-Old Tax Policy in California

A tentative decision in favor of plaintiff Akerman Senterfitt in Parmar v. State Board of Equalization (search for case No. BC379013) may overturn a 30-year-old policy applied to some 25 tax and fee programs. Under the BOE’s policy, corporate executives were held liable for unpaid corporate excise taxes. In this case, executives of Santos Agency Inc., who were assessed taxes purportedly owed by their suspended corporation, challenged this unwritten policy.

Los Angeles County Superior Court Judge Jane L. Johnson decided that the BOE’s policy lacked any statutory or regulatory support, violated California corporate law and the Administrative Procedures Act. Judge Johnson subsequently ordered the BOE to refund all taxes paid by the plaintiffs. An objection document has been filed by the defendant and the case’s status remains pending.

This entry was posted on Monday, January 19th, 2009 at 3:52 pm and is filed under CalCPA Buzz. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.