• Delicious




California Receives $3 Billion Tax Windfall

by Leroy Baker, Tax-News.com, New York

06 April 2005

The state of California has received an unexpected revenue windfall totalling more than $3 billion following the closure of the state’s most recent amnesty on business taxes.

The final figure is ten times higher than the original forecast of $333 million and Department of Finance Spokesman H.D. Palmer has stated that the final figure, when revealed, “will be on the order of $3 billion over forecast”.

However, it is thought that many of the companies which took part in the amnesty were doing so from a position of caution, and may not have necessarily owed all of the taxes that they have paid to the state treasury under the scheme. This means that a substantial portion of the $3 billion collected during the amnesty could be refunded to the companies concerned.

By filing under the amnesty, firms hoped to avoid a harsh new penalty regime, under which recalcitrant taxpayers could be hit with a fine equalling up to 40% of the unpaid tax and 50% of the unpaid interest.

.

 

 






Write a comment