Laws, Regulations & Annotations


Business Taxes Law Guide – Revision 2021

Sales And Use Tax Law


Article 2. Deficiency Determinations

Section 6485

6485. 25 percent penalty. If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or authorized rules and regulations, a penalty of 25 percent of the amount of the determination shall be added thereto.

Standard of proof for civil fraud is clear and convincing evidence.—In a bankruptcy case, a federal appeals court predicted that the California Supreme Court would apply a standard of clear and convincing evidence, not merely a preponderance of evidence, to establish civil tax fraud. In re Renovizor's, Inc. (9th Cir. 2002) 282 F.3d 1233.