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October 29, 2008

Det. No. 07-0305, 27 WTD 201 (2008) - The purchaser of the assets of a business objects to a successorship assessment.  Held:  Successorship liability can be imposed when a company purchases business assets from an intermediate seller that did not incur the original tax liability, RCW 82.32.140’s six month limitation did not bar the assessment, and the assessment did not result in manifest injustice.   We affirm the assessment.

Det No. 07-0306, 27 WTD 211 (2008) - A corporation that purchased a tobacco store and resold it to another company the next day objects to the imposition of successorship liability.  Held:  The Department of Revenue was not adequately advised of the purchase, so the six month statute of limitations was not triggered; the predecessor’s assessment was timely supplied, and the successorship assessment did not result in manifest injustice.

Det No. 08-0111, 27 WTD 221 (2008) - Taxpayer, who runs a website where customers can obtain prescription drugs without visiting a physician, appeals the Department of Revenue’s (DOR) imposition of Service and Other Activities B&O tax on what DOR alleges is Taxpayer’s income from hosting a web site, arguing that its revenues are properly reportable under the Retailing B&O classification.  We grant the petition.













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