7152-7156
REVENUE AND TAXATION CODE
SECTION 7152-7156
7152. (a) Any person required to make, render, sign, or verify any
report who makes any false or fraudulent return, with intent to
defeat or evade the determination of an amount due required by law to
be made is guilty of a misdemeanor punishable as provided in Section
7153.
(b) Any person who willfully aids or assists in, or procures,
counsels, or advises in, the preparation or presentation, in
connection with any matter arising under this part, of a return,
affidavit, claim, or other document that is fraudulent or false as to
any material matter, whether or not the falsity or fraud is with the
knowledge or consent of the person authorized or required to present
the return, affidavit, claim, or document, is guilty of a
misdemeanor punishable as provided in Section 7153.
7153. Any violation of this part by any person, except as otherwise
provided, is a misdemeanor. Each offense shall be punished by a fine
of not less than one thousand dollars ($1,000) and not more than
five thousand dollars ($5,000), or imprisonment not exceeding one
year in the county jail, or both the fine and imprisonment in the
discretion of the court.
7153.5. Notwithstanding any other provision of this part, any
person who violates this part with intent to defeat or evade the
reporting, assessment, or payment of a tax or an amount due required
by law to be made is guilty of a felony when the amount of unreported
tax liability aggregates twenty-five thousand dollars ($25,000) or
more in any 12-consecutive-month period. Each offense shall be
punished by a fine of not less than five thousand dollars ($5,000)
and not more than twenty thousand dollars ($20,000), or imprisonment
for 16 months, two years, or three years, or both the fine and
imprisonment in the discretion of the court.
7154. Any prosecution for violation of any of the penal provisions
of this part shall be instituted within five years after the
commission of the offense, or within two years after the violation is
discovered, whichever is later.
7155. (a) Any person who, for the purpose of evading the payment of
taxes due under this part, knowingly fails to obtain a valid permit
prior to the date on which the first tax return is due shall be
liable for a penalty of 50 percent of any tax determined to be due
for the period during which the person engaged in business in this
state as a seller without a valid permit.
(b) This section shall not apply to any person whose measure of
tax liability over the period during which he or she was engaged in
business in this state as a seller without a valid permit averaged
one thousand dollars ($1,000) or less per month.
(c) This section shall not apply to the amount of taxes due on the
sale or use of a vehicle, vessel, or aircraft, if the amount is
subject to the penalty imposed by Section 6485.1 or Section 6514.1.
7156. (a) In the case of any civil proceeding which is--
(1) Brought by or against the State of California in connection
with the determination, collection, or refund of any tax, interest,
or penalty under this part, and
(2) Brought in a court of record of this state,
the prevailing party may be awarded a judgment for reasonable
litigation costs incurred in that proceeding.
(b) (1) A judgment for reasonable litigation costs shall not be
awarded under subdivision (a) unless the court determines that the
prevailing party has exhausted the administrative remedies available
to that party under this part.
(2) An award under subdivision (a) shall be made only for
reasonable litigation costs which are allocable to the State of
California and not to any other party to the action or proceeding.
(3) No award for reasonable litigation costs may be made under
subdivision (a) with respect to any declaratory judgment proceeding.
(4) No award for reasonable litigation costs may be made under
subdivision (a) with respect to any portion of the civil proceeding
during which the prevailing party has unreasonably protracted that
proceeding.
(c) For purposes of this section--
(1) The term "reasonable litigation costs" includes any of the
following:
(A) Reasonable court costs.
(B) Based upon prevailing market rates for the kind or quality of
services furnished any of the following:
(i) The reasonable expenses of expert witnesses in connection with
the civil proceeding, except that no expert witness shall be
compensated at a rate in excess of the highest rate of compensation
for expert witnesses paid by the State of California.
(ii) The reasonable cost of any study, analysis, engineering
report, test, or project which is found by the court to be necessary
for the preparation of the party's case.
(iii) Reasonable fees paid or incurred for the services of
attorneys in connection with the civil proceeding, except that those
fees shall not be in excess of seventy-five dollars ($75) per hour
unless the court determines that an increase in the cost of living or
a special factor, such as the limited availability of qualified
attorneys for the proceeding, justifies a higher rate.
(2) (A) The term "prevailing party" means any party to any
proceeding described in subdivision (a) (other than the State of
California or any creditor of the taxpayer involved) which--
(i) Establishes that the position of the State of California in
the civil proceeding was not substantially justified, and
(ii) (I) Has substantially prevailed with respect to the amount in
controversy, or
(II) Has substantially prevailed with respect to the most
significant issue or set of issues presented.
(B) Any determination under subparagraph (A) as to whether a party
is a prevailing party shall be made--
(i) By the court, or
(ii) By agreement of the parties.
(3) The term "civil proceeding" includes a civil action.
(d) For purposes of this section, in the case of--
(1) Multiple actions which could have been joined or
consolidated, or
(2) A case or cases involving a return or returns of the same
taxpayer which could have been joined in a single proceeding in the
same court,
these actions or cases shall be treated as one civil proceeding
regardless of whether the joinder or consolidation actually occurs,
unless the court in which the action is brought determines, in its
discretion, that it would be inappropriate to treat these actions or
cases as joined or consolidated for purposes of this section.
(e) An order granting or denying an award for reasonable
litigation costs under subdivision (a), in whole or in part, shall be
incorporated as a part of the decision or judgment in the case and
shall be subject to appeal in the same manner as the decision or
judgment.
(f) For purposes of this section, "position of the State of
California" includes either of the following:
(1) The position taken by the State of California in the civil
proceeding.
(2) Any administrative action or inaction by the State Board of
Equalization (and all subsequent administrative action or inaction)
upon which that proceeding is based.