§ 12.45.100. Tax avoidance.

A.

If the department has reasonable cause to believe that a rental agency has structured a contract to rent a motor vehicle to avoid collecting or remitting the tax levied under this chapter, or has wrongfully deceived its customers or the department, the department may take one or both of the following actions:

1.

Declare there is a rebuttable presumption that the substance of a specific motor vehicle rental transaction is a taxable transaction under this chapter and proceed to establish, levy and collect the tax together with costs, penalties and interest as provided for in this chapter; or

2.

Order and require the rental agency to retain and preserve records identified in section 12.45.150 for not more than six years. If the records for prior reporting periods do not exist, the department may prepare and file involuntary return(s) on behalf of the rental agency, as provided in subsection 12.45.060B.

(AO No. 2000-116(S), § 3, 7-18-00; AO No. 2015-48, § 11, 5-14-15 )