Laws, Regulations and Annotations

Search

BTLG Table of Contents > Sales and Use Tax Court Decisions > A > American Fidelity Fire Insurance Co. v. State Board of Equalization … (1973)

Sales And Use Tax Court Decisions

A    B    C    D    E    F    G    H    I    J    K    L    M    N    O    P    R    S    T    U    V    W    Y

---

A

---

American Fidelity Fire Insurance Co. v. State Board of Equalization … (1973)

---

Duplicate Notice to Surety Not Required

Plaintiff, an insurance company acting as surety for persons required to post security for payment of sales and use taxes, sought a refund of certain penalties paid by it on its bonds. Plaintiff contended that it was entitled to duplicate notice of tax determinations issued against its principals, so that it could make payment of the tax before the determinations became final and penalties were added thereto. The court, in affirming the judgment of the trial court, held that there is no constitutional compulsion for the state to give a duplicate notice to the surety; notice to the taxpayer is sufficient. Nor was this a situation requiring notice to the surety under Civil Code Section 2808, because the surety could have acquired notice of default from its principal through the exercise of due diligence. Lastly, the court held that when the Board requires Section 6701 bonds to be written so as to include the payment of penalty assessments in addition to principal and interest, the Board is not in violation of Civil Code Section 2773. Civil Code Section 2773 prohibits agreements to indemnify wrongdoers. The indemnity here was for the benefit of the State under a reasonable procedure to secure payment of revenue. American Fidelity Fire Insurance Co. v. State Board of Equalization (1973) 34 Cal.App.3d 51.